Delta to Forgo Aircraft Purchases, Instead Spend $1B on Upgrades

Delta Air Lines Inc., said that it would invest $1 billion over the next four years to upgrade aircraft and passenger facilities, though it declined comment on the future of a Boeing 787 order.

Delta Air Lines Inc., said that it would invest $1 billion over the next four years to upgrade aircraft and passenger facilities, though it declined comment on the future of a Boeing 787 order.

The world's largest airline by revenue said it would invest $300 million a year through mid-2013 to add flat beds and entertainment systems throughout its fleet, alongside other service upgrades.

Delta said the move didn't change its existing investment plans. Capital spending will drop to $1.1 billion this year from $1.3 billion in 2009.

The airline, like U.S. carriers, is playing catch-up with overseas rivals that have invested heavily in new aircraft and passenger amenities. The investments are focused on upgrading long-haul services from its New York hub and on trans-Pacific routes that rely heavily on premium passengers.

The upgrade program includes 14 Boeing 767-400ERs and 52 Boeing 767-300ERs, a model that some analysts thought would be replaced by the new 787.

Delta inherited 18,787 orders when it merged with Northwest Airlines Inc., the North American launch customer for the type. The future of the 2005 order--which included 50 options--has been uncertain for some time, and Delta said Monday that it remained in discussions with Boeing Co.

It will also upgrade 16 Boeing 747-400s, amid efforts by a number of other international carriers to shift away from the jumbo.

Delta also plans to add first-class cabins to some regional aircraft operated by Delta Connection carriers and will make some wing installments to improve fuel efficiency.

 

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