Says It No Longer Needs As Many 737-800s

On Wednesday, Delta Air Lines asked for permission from the US Bankruptcy Court to sell some still-to-be-delivered aircraft, and purchase other models the carrier says would better suit its latest plans.

The Associated Press reports Delta wants to sell 38 Boeing 737-800s it was to begin receiving in 2008 to an aviation finance company, Babcock & Brown Aviation Finance Ltd. and Aviation Capital Group Corp. The carrier would instead purchase smaller 737-700 models, as well as other types.

The 737-800 is used on Delta's domestic routes... but the airline says it doesn't need as many planes now that it has cut back on its domestic routes. The carrier adds the smaller -700s would be more efficient on many of the routes still flying.

"The acquisition of the new Boeing model 737-700 aircraft for Delta's fleet is important for Delta's future operations and business plans because it will open new markets that Delta is not currently equipped to serve profitably," Delta said in its motion to the court.

Delta is also asking the court to release $115 million in a blocked account that's being held as collateral on other aircraft agreements. The Atlanta-based airline says it needs the money to pay outstanding interest on aircraft purchases. The airline would keep anything left over.

A hearing on Delta's petition to the court is scheduled for December 20. The carrier has asked the terms of the deal not be revealed to the public.

In a statement to ANN, Boeing said it "looks forward to final bankruptcy court approval of the transactions mentioned in the Delta Air Lines announcement. Until that occurs, Boeing cannot comment on any aspect of its negotiations with Delta."

With the exception of several remaining McDonnell-Douglas MD-88 and MD-90 models, Delta flies Boeing aircraft exclusively.

FMI: www.delta.com, www.boeing.com