PAUL LEWIS / CINCINNATI
Carrier will need to renegotiate scope clause agreements to add more 70-seat aircraft
Delta Air Lines will decide by the end of the year on the need for additional regional jets for its Connection network to secure 2005 delivery positions. The carrier says it would like to add more 70-seat jets, but must renegotiate scope clause restrictions.
Delta's two wholly owned regional operators, Comair and Atlantic Southeast Airlines (ASA), recently took delivery of their 145th and 100th Bombardier CRJ jets, respectively, and have no more 50-seaters on order beyond the end of the year. They will also have taken delivery of all 58 CRJ700s on order by the end of 2004.
"We continue to make plans for 2005 and beyond and have lots of opportunities, whether [Embraer] ERJs or CRJs. By the end of this year we expect to have formulated a decision," says Fred Buttrell, Delta Connection chief executive. The airline has options on 362 CRJs, but because of a 13-month lead time, some positions in 2004 have already expired.
Delta will need additional jets to sustain growth in capacity, running at about 25% a year and now being outpaced by revenue expansion. It has particular interest in larger aircraft such as the CRJ700.
With rival carriers United Airlines and US Airways rolling back scope clauses and planning to add large numbers of 70-seaters, as well as low-cost competitor JetBlue ordering Embraer 190s, there is growing competitive pressure to expand the CRJ700 fleet. Delta's agreement limits the number of 70-seaters to 58 units unless the mainline carrier grows, which at the moment it is not.
For ASA, there is also the decision over the next 18 months to find a replacement for its 19 ATR 72-210s, the first of which comes off lease in 2005. The airline is evaluating whether to replace the aircraft with a more modern turboprop - the ATR 72-500 or Bombardier Dash 8 Q400 - or a large regional jet. The Atlanta-based carrier, in the meantime, will retire its remaining Embraer EMB-120 Brasilias in August.
Source: Flight International
