PAUL LEWIS / WASHINGTON DC
Manufacturer responds to cancellations and delivery deferrals by working with customers to place unwanted aircraft
Boeing is forging joint marketing agreements with key customer airlines to place surplus aircraft, as the number of order cancellations and delivery deferrals continues to mount in the face of a severe downturn in traffic and revenue.
Continental Airlines and Delta Air Lines are negotiating with Boeing to defer delivery of more than 70 aircraft out of almost 170 that remain on order and are due for delivery between 2002 and 2005.
This follows United Airlines' announcement that it has pushed back delivery of 43 predominantly Airbus aircraft by between two and four years.
American Airlines has already said it is deferring 36 aircraft, comprising 28 Boeing 737-800s, five 767s, two 777s and one 757.
Delta is understood to be negotiating to defer delivery of 18 737-800s, five 767-400s and one 777-200ER due for delivery next year, having just retired 17 older 727s and grounded another 32 737-200/300s, 767-200s and MD-80s. Continental says it has pre-financing in place to take 24 Boeing aircraft due for delivery by March 2002, but has financing for only 13 widebodies of the remaining 60 on order through to 2005 and it could defer the rest.
Boeing in response is entering into joint marketing deals with the carriers to place some of the surplus aircraft elsewhere, such as South African Airways (SAA) which is planning to acquire up to 15 new 777s or A340s. SAA is being offered two Continental 777-200ERs and at least one Lauda Air aircraft powered by General Electric GE90 engines or two Rolls-Royce Trent 800-powered Delta 777s.
United is similarly working with Boeing and the US Eximbank to place three Pratt & Whitney PW4000-powered 777-200ERs with Pakistan International Airlines. The airline has seven remaining 777s on order and has struck a deal to defer delivery of the seventh aircraft from next May to 2004. It has also delayed delivery of 24 out of the 44 A319/A320s due for delivery in 2002 and all 18 planned for the following year until 2004-07.
Boeing is understood to be discussing similar deals with Singapore Airlines (SIA) and Malaysia Airlines (MAS), with a view to placing 777s with Vietnam Airlines. SIA is seeking to delay 11 aircraft due for delivery next year.
MAS is believed to be pushing back deliveries of Boeing 747-400s and 777-200s - some by up to six years. The airline wants to defer two 777s due for delivery in March and May next year, while local media reports that MAS has arranged deferrals covering four 747-400s and four 777-200s.
Source: Flight International
