Background on Delta Fleet acquisition

BABABOOY

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Jun 15, 2007
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Namely the background  on the 717 acquisition 
 
https://www.youtube.com/watch?v=mGv0DpZ_Buc
 
88 a/c at todays cost about $3 Billion vs no capital upfront 
and roughly 700million for the 717's and owning a/c at the end 
of the leases. 
 
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Thanks for posting.   There's a financial analyst troll who registered at Flyertalk last year (their posts make some of us think that they're Hunter Keay or some other noted analyst) who went on an on about how DL did not get a great deal and how WN did not agree to refurbish the planes for DL at great expense.   He was, of course, wrong.   WN spend a huge amount of money to buy FL and despite saying that the 717s had a place at the new Southwest, WN ended up giving them away to Delta.   Excellent win for DL. 
 
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and in the process, DL improved customer service satisfaction and its rankings in industry surveys.

"In Airfarewatchdog's 2012 and 2013 surveys of the airline industry, Delta Air Lines placed sixth both times, tying with Southwest Airlines in 2012. But in both of those years, Delta placed higher than United and American Airlines Group's American Airlines and US Airways.

"After coming in sixth for the past two years, Delta's move to first place is a big one. Not only did Delta take the top spot, but it also widened the difference between itself and American Airlines and United, which placed seventh and eighth, respectively.

"Of particular significance is Delta's dramatic reduction in flight cancellations. In the 2013 survey, Delta cancelled 0.42% of flights, while that number fell to 0.11% for the current results."

http://www.fool.com/investing/general/2014/09/07/how-did-delta-air-lines-blow-away-its-rivals-in-th.aspx

"Delta has taken an unusual strategy in recent years of not ordering as many new aircraft and instead selectively purchasing and refurbishing older and existing aircraft. But having older aircraft makes having a quick or preventive response to part failures even more important. The development of preventative warning and replacement systems is important for Delta, as such systems could allow Delta to more than make up for the presence of older aircraft in its fleet."