Will Save Carrier About $200 Million Annually

Delta Air Lines will be allowed to renegotiate leases on 88 aircraft, US Bankruptcy Court Judge Adlai Hardin ruled earlier this week.

Delta CFO Edward Bastian told the Associated Press the judge's ruling means the troubled carrier has successfully renegotiated, or restructured, about 90 percent of the contracts involving its main fleet, and a third of those for its regional aircraft.

In all, Delta maintains a fleet of 682 aircraft -- and many of those are leased.

The ruling was by no means assured, as any renegotiation was initially opposed by Delta's unsecured creditors. Those creditors had argued the lease holders -- who had worked as a group in their dealings with the bankrupt carrier -- may have violated anti-trust regulations by doing so.

The committee representing those creditors later dropped their complaint, however, and said Monday it would not sue the lease holders.

While it's not sound financial advice to view money saved as money to be spent, the savings Delta earns off the renegotiations -- estimated at approximately $200 million annually -- will likely give Delta some run to breathe as it deals with other issues during its Chapter 11 reorganization.

That's good news for Delta -- which, as Aero-News reported earlier this week, posted a Q4 net loss of $1.2 billion, and an yearly net loss of $3.8 billion. 

FMI: www.delta.com