Delta sending some jets to Hong Kong for service

[FA Mikey]

Delta Air Lines has cut short a contract to have some of its planes serviced in Canada and will shift the work to Hong Kong and U.S. providers.

The scuttled deal was with ACE Aviation Holdings Inc.'s aircraft maintenance unit in Vancouver, British Columbia. It will mean the loss of 700 jobs.

"We are not in a position to meet Delta's cost expectations," said Chahram Bolouri, chief executive officer of the Air Canada Technical Services unit, in a statement. The five-year contract, signed in March 2005, is being terminated three years early.

story here

 

[lpbrian]

Sounds like Delta's "Tech ops" is in a little disarray.

 

[LGA Fleet Service]

Delta will send 11 of its fleet of 106 Boeing 767 aircraft to HAECO, a Hong Kong maintenance provider, and have others serviced in the U.S., Charaf said. He said the Chinese company, which also does work on Continental, Northwest and UPS jets, began work on the first Delta jet this month.


Interesting.I didn't know so many US Flag carriers sent their work to communist China to save a few bucks on repairs.Yes, I know it's Hong Kong, but it's a part of Red China.


Whats the matter, Venezuela doesn't have any shops set up for heavy maintenance? :down:

 

[eolesen]

They may be part of mainland China now, but HAECO's always been part of Cathay Pacific and a major player in the Asia/Pacific marketplace for at least 20 years. Their reputation is pretty solid, and not a chop shop by any means.

 

[FWAAA]

Mr Owens and others have repeatedly posted that AMR is the low-cost heavy overhaul provider.

If that were true, then wouldn't DL and CO and UA and NW and WN and US/HP and AS all be beating down AMR's door instead of shipping their airplanes to China or El Salvador or Alabama?

 

[DLFlyer31]

Mr Owens and others have repeatedly posted that AMR is the low-cost heavy overhaul provider.

If that were true, then wouldn't DL and CO and UA and NW and WN and US/HP and AS all be beating down AMR's door instead of shipping their airplanes to China or El Salvador or Alabama?

AA may very well be a low-cost provider, but I doubt that DL/CO/UA/NW want to give a lot of business to a direct competitor.

 

[flyhigh]

That would pretty much make for a union dream to have them send all their work to AA. On top of that, it depends on how you figure cost. AA admits they are not the lowest cost provider, however, their turnaround time is better than most which allows you to get the plane back in the air generating revenue quicker...

 

[lpbrian]

I can't see any business sense sending 767's all the way to Hong Kong. What's the cost to fly a 767? $7,000 per hour? A 767 can't fly non-stop from ATL, so it will have to stop along the way. It has to be at least 15 hours total each way. So that adds up to at least $200,000 in ferry costs. Not to mention the added down time.

 

[whatkindoffreshhell]

I can't see any business sense sending 767's all the way to Hong Kong. What's the cost to fly a 767? $7,000 per hour? A 767 can't fly non-stop from ATL, so it will have to stop along the way. It has to be at least 15 hours total each way. So that adds up to at least $200,000 in ferry costs. Not to mention the added down time.

You sir, should be an elected state official in MN.

They've got a huge facility that NW walked away from.

Split the ferry cost difference with 'em and everyone still comes out ahead!!

 

[GSEMAN]

Delta Air Lines has cut short a contract to have some of its planes serviced in Canada and will shift the work to Hong Kong and U.S. providers.

The scuttled deal was with ACE Aviation Holdings Inc.'s aircraft maintenance unit in Vancouver, British Columbia. It will mean the loss of 700 jobs.

"We are not in a position to meet Delta's cost expectations," said Chahram Bolouri, chief executive officer of the Air Canada Technical Services unit, in a statement. The five-year contract, signed in March 2005, is being terminated three years early.

story here

well this is just another of Anthony Charaf's blunders. That snake in the grass needs to go now.

 

[MCI transplant]

That would pretty much make for a union dream to have them send all their work to AA. On top of that, it depends on how you figure cost. AA admits they are not the lowest cost provider, however, their turnaround time is better than most which allows you to get the plane back in the air generating revenue quicker...

<_< ---Now, aa has done heavy "C" checks on Air Canada's 767's. At the same time ACE was doing the same for Delta! Go figure!!!---- Is there something here we don't understand?--- 😉

 

[MCI transplant]

AA may very well be a low-cost provider, but I doubt that DL/CO/UA/NW want to give a lot of business to a direct competitor.

<_< ----- Don't be so sure! Stranger things have happened in the world of big business!

 

[Alice Cramden]

It's all about getting landing slots in China.

 

[longing4piedmont]

It's all about getting landing slots in China.

Hey, if it works go for it.....

 

[Bear96]

It's all about getting landing slots in China.

How does it help do that?

The U.S. DOT (not China) determines which US carriers get the slots allocated to the U.S.