Innovative Solutions & Support, Inc. Reports Purported Termination of Contract for MD88/90 Cockpit U

700UW

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Nov 11, 2003
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http://finance.yahoo.com/news/innovative-solutions-support-inc-reports-000000975.html
 
Innovative Solutions & Support, Inc. (the “Company”) (ISSC) today reported that Delta Airlines has purported to terminate its contract with the Company to provide a cockpit upgrade for its fleet of MD88 and MD90 aircraft. The Company is in continuing discussions with Delta Airlines regarding the parties’ obligations under the contract, which represented approximately $62 million of the Company’s reported backlog as of June 30, 2014.
 
 
 
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I could only imagine the pilot reaction when being greeted by a southwind at the gate. The blank stare when the pilot described his actual aircraft maintenance discrepancy.

...with the "and?"
 
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since 700 just copied the post from the child's table and there is nothing definite about what it means, southwind's comment makes sense.

There is no known public information as to what it means but the likely result is that DL is seeking another vendor.

Or it is possible that Richard Anderson's belief that there will be an enormous bubble coming in the global narrowbody market. which could mean that DL might be able to pick up newer generation aircraft at much lower acquisition costs.

but southwind is absolutely correct. there is no firm answer what it means.
 
I am wondering what is the story here. I agree with south wind and do any of you know what this deal entailed ? It is a non event.
 
The story is that delta is going to stop upgrading the planes. Isn't that done in-house?
 
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if that was where you were trying to go with it, you fail to note that new build airplanes as AA is buying are not done inhouse.

DL's 20 year old aircraft actually require maintenance. And DL does do a fair amount of its maintenance inhouse,
in fact they do more of it than any other carrier than pre-merger AA.

and don't pull out the airframe overhaul speech.

DL has yet to say what is going on but it is highly unlikely at this point that the cancellation of the contracts means the M80s and 90s are going anywhere but rather than DL is looking at another supplier.

For IS&S, it is a very big deal.


For DL, it's part of what they do on a regular basis.
 
It could be a matter of switching suppliers, but it really wouldn't surprise me if someone in Finance came to the conclusion that investing more into the MD80/MD90 fleet than they've already invested isn't the best use of capital.
 
metopower said:
I am wondering what is the story here. I agree with south wind and do any of you know what this deal entailed ? It is a non event.
Is it, though?

It's either simply a switch in vendors (a non-event for us at DL), or could represent a large shift in fleet strategy- which is a very big deal.

You guys can dismiss it if you want; I think it's interesting, and am curious to see where the story takes us.
 
It could be a matter of switching suppliers, but it really wouldn't surprise me if someone in Finance came to the conclusion that investing more into the MD80/MD90 fleet than they've already invested isn't the best use of capital.
meto is probably better qualified to speak to the subject even though he doesn't fly the M80/90, but I believe part of the problem is that the M80/90s nav systems don't have the capacity to handle the size of data that the modern ATC system requires.

There are multiple options to upgrade the system. The price for any of the systems is a fraction of the cost of buying a new aircraft. If there is a decision to no longer keep the M80s/90s, it will be made by a lot of other factors than the cost of an upgraded nav system.

As recently as a year ago, DL was planning to reconfigure business class on the 747s but that was scrapped after the decision was made to accelerate their retirement. That decision was made based on the changes that are taking place in how DL's TPAC system will look like in a few years.

It would have cost next to nothing to move some chairs around compared to a nav system but DL stopped the 747 project despite the fact that there will likely be 744s in DL's fleet for several more years even if the fleet is fully wound down.

and, no, Kev, no one is dismissing anything.

I am just saying there isn't enough info to know at this point. Given that the M90s have comparable fuel efficiency to the A320 and the M90s are fairly young, the chances are very slim that DL will now decide they won't upgrade the nav systems and live with an aircraft that becomes less and less capable of functioning in today's ATC system
 
WT you are wrong once again all new PMUS and PMAA planes are being worked on by US or AA employees not vendors. Keep up the lies and misinformation your typical mo.
 
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Kev3188 said:
Is it, though?It's either simply a switch in vendors (a non-event for us at DL), or could represent a large shift in fleet strategy- which is a very big deal.You guys can dismiss it if you want; I think it's interesting, and am curious to see where the story takes us.
Those decisions are very important to folks like dawg. They can and will have great implications to M&R staffing decisions.

I lived it at NWA. It sounds like DL will go a different direction. We will see. For someone like southwind to brush this off just shows how out of touch he is with his surroundings. I am guessing he makes a bee-line from the parking lot to his little shop bench every day and has not been out on the hangar floor in a while.

I remember the look those guys had on their face the day they closed the Atlanta maintenance base and found out they would have to work live aircraft on the line to keep their job or move.

Same thing happened to the TPA, MCO, and DFW guys at DL.

I hope this does not have the same effect on the TOC.
 
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700UW said:
The story is that delta is going to stop upgrading the planes. Isn't that done in-house?
 
The answer to your question is "Why would DL continue to upgrade aircraft, they might soon be sending to the desert!
 
I know business sense is none of your's strong suit.