Wed, Jul 11, 2012
Southwest Airlines, Delta Air Lines, and Boeing Capital Reach Agreement On The Airplanes
Southwest confirmed Monday that it, together with its subsidiary, AirTran Airways, has reached an agreement with Delta Air Lines and Boeing Capital to lease or sublease all 88 of AirTran's Boeing 717 aircraft to Delta. The Company will transition approximately three 717 aircraft per month beginning August 2013.
"We are pleased to have reached an agreement to transition AirTran's 717 fleet to Delta," said Gary Kelly, Chairman of the Board, President, and Chief Executive Officer. "Replacing 717 flying with 737s is expected to significantly benefit our financial results once the transition is complete, and better supports our strategic and financial goals. Obviously, having an all-Boeing 737 fleet improves our scheduling and operating efficiency. This was the best opportunity, far and away, to sublease the Boeing 717 aircraft."
By reaching this agreement, the Company will avoid converting the AirTran 717 fleet into Southwest as part of the AirTran integration. The Company's aircraft rent expense associated with Boeing 717s will be eliminated as each aircraft is transitioned to Delta. The Company's total estimated AirTran acquisition and integration costs are expected to increase by approximately $50 million as a result of the aircraft transition costs assumed by the Company as part of this 717 agreement. The Company's annual pre-tax results are expected to benefit by approximately $200 million, after all Boeing 717s are transitioned to Delta and replaced with Boeing 737 flying. Accounting for this third quarter transaction will be discussed during the Company's second quarter financial results conference call.
Also: Legend Cub, Piper Orders, Postal UAVs?, IMC Club 'Brown Jacket Award', X-47B Refueling The Diamond DA62 has received its EASA Type certificate. After a sunny and warm day Wed>[...]
Also: United Bars Security Expert, Airborne Advisors, NTSB Video, Avidyne, Cessna, Airport Access Tempest Plus Marketing Group has announced support for Able Flight as a Platinum L>[...]
SnF2015 Sponsor: Always-Innovative Aspen Avionics Aspen Avionics specializes in bringing the most advanced technology and capability into general aviation cockpits. Our products in>[...]
Progressive Aerodyne Does it All -- Land, Sea and Sky! Explore 'no limits' living in the newly FAA certified Searey Elite Amphibious Light Sport Airplane. This distinctive aircraft>[...]
Aerospace Web Aerospaceweb.org is a non-profit site operated by engineers and scientists in the aerospace field. The goal of this site is to provide educational information on a va>[...]