Sat, Oct 21, 2006
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.
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