Long-Haul Jets To Work International Routes

Northwest Airlines has secured the financing necessary to acquire 18 new Boeing 787 Dreamliners over the next three years. The carrier has not released financial details, but says it's reached an agreement with Boeing and Rolls-Royce.

In a release on the company's site, Northwest CEO Doug Steenland said, "The agreements reached with Boeing and Rolls-Royce are key accomplishments in our efforts to modernize and restructure the Northwest fleet as part of an overall plan to position Northwest for the long-term."

None of the companies involved released any pricing information, but Boeing's 787s list for some $150 million each. Airlines can generally cut a deal for quite a bit less than that.

Northwest is still struggling financially under Chapter 11 bankruptcy protection. It has not decided whether to buy or lease the jets. The deal is still subject to approval by the bankruptcy court.

The carrier says the jets will sport Roll-Royce Trent 1000 engines. The order, originally placed in May 2005, gives Northwest an option for 50 additional aircraft.

The company plans to have its first 787 in service by October of 2008.

Northwest is the first North American customer to order Boeing's 787, but the jet maker says it has orders from 32 airlines abroad totaling 432 planes. Boeing says sales on those planes will total nearly $70 billion.

Northwest says it plans to use the 787s on its long-haul overseas flights. Those routes are currently serviced by older 747s and Airbus 330s. It's configuring the 787s with 36 business class and 185 coach seats.

The company says it's renegotiated contracts with Boeing and Airbus, as well as manufacturers for its regional fleets in an effort to reduce ownership costs. The reduced operating cost of the 787 and future aircraft is another key restructuring effort.

With those and other on-going cost-cutting measures in place, Northwest hopes to emerge from bankruptcy early next year.

FMI: www.nwa.com