AirTran Airways and Boeing have agreed to stretch out delivery of most of the 42 Boeing 717s AirTran has on order, to help the cash-strapped low-fare US air carrier reduce its spending.
It also has a commitment from Boeing to finance its next 20 twinjets to be delivered between now and early 2002.
The airline will slow the retirement of its remaining 33 ageing McDonnell Douglas DC-9-30s to retain capacity levels. "Over the next three years, this transaction will reduce significantly our capital expenditures as well as our interest expense, de-leverage the company and enhance cashflow," says Joe Leonard, AirTran's chairman and chief executive. Although logging five consecutive quarters of profitability, AirTran Airways remains $230 million in debt.
AirTran will receive eight 717s this year as previously scheduled, but four fewer next year (12) and six less in 2002 (12). The last 10 on firm order have been pushed into 2003, while delivery of the 50 aircraft on option extend through to September 2005.
The delivery slots will be released back to Boeing.
Source: Flight International
