FlightGlobal.com
Home
Premium
Archive
Video
Images
Forum
Atlas
Blogs
Jobs
Shop
RSS
Email Newsletters
You are in:
Home
Aviation History
1986
1986 - 0246.PDF
AIR TRANSPORT MD-88 is Delta 3 ATLANTA Delta Air Lines, one of the largest US carriers, has put in an order for 80 McDonnell Douglas MD-88s: 30 firm orders and 50 options, worth about $2,000 million if all options were taken up. The MD-88 is basically a souped-up 142-seat MD-82 with Pratt & Whitney JT8D-219 high bypass engines and superior avionics. Delta has opted for two-class seat configuration (14/128) with wider aisles and narrower seats than the stan dard MD-80 models. More importantly, the aircraft can easily be retrofitted with propfans once the technology becomes available. Delta has been looking at aircraft for a major re- equipment programme for some time. Several years ago it drew up detailed specifica tions for a 150-seat aircraft, dubbed the Delta 3. Once the MD-88 is equipped with ultra high bypass (UHB) engines, hopefully in 1991, the MD-88 will be about the closest manufacturers have come to these requirements, a Delta spokesman says. The choice finally narrowed to Boeing's 737-300 versus an MD-80 type. Although it is operating leased 737s, Delta says it chose the McDonnell Douglas for its higher seating capacity and fuel economy. The A320 might have suited its purpose but, says Delta, "we've waited long enough, we can't wait another four or five years." Both American and United are setting up hubs in Delta's region and it had to act quickly. According to Ron Allen, president and chief operating officer, "Delta's most immediate goal in this latest selection process was to acquire the optimum aircraft for the continued expansion of our three major traffic hubs, Atlanta, Dallas/Ft. Worth and Cincinnati". The order coincides with the announcement of disap pointing end-of-year results. Last quarter profit for 1985 was 97 per cent down on the previous year at $1-89 million. Results for the whole year stood at $156-8 million profit, a 39 per cent decrease. Republic has three more Boeing 757s yet to be delivered, to make a total of six. It is interesting that Republic's buyer Northwest, which has just ordered 19 757s, has chosen them with Pratt & Whitney engines unlike Republic, which selected Rolls-Royce power Northwest buys Republic MINNEAPOLIS It was predicted that deregu lation would lead to massive takeovers creating monolithic carriers; now the USA has a new third-biggest airline as NWA Inc, parent company of Northwest Orient Airlines, buys Republic Airlines. Republic is itself the pro duct of a string of takeovers which began in 1979, just after deregulation: it was formed then as a result of a merger of North Central Airlines and Southern Airways, and in the following year it acquired Hughes Airwest. Now the new Northwest Orient can claim a fleet of 298 aircraft, and a workforce of 30,000 employees. Both air lines were (and remain) based at Minneapolis/St Paul. The merged route network covers 100 US cities, four Canadian, two Mexican, eight European, and 11 Asian. Northwest is in better shape now, with its bigger home network, to compete with United when the latter arrives on the Pacific in due course. North west is currently the biggest US Pacific carrier, and third biggest across the Atlantic. Northwest paid $17 a share for Republic's common stock, and the deal was reckoned to be worth $884 million. The president and chief executive officer of the new carrier is to be Steven Rothmeier, who held that position with North west before the purchase; the future of Stephen Wolf, dynamic head of Republic, is uncertain. Wall Street predicts further takeovers as airlines ma noeuvre to protect them selves from the vicious fare wars which have become endemic. Highland Express is airborne LONDON ~ Highland Express is a paper airline no longer. It has completed a $19 million lease deal with Citicorp for a Boeing 747-100 for delivery on May 15. The aircraft is ex-American Airlines and powered by Pratt & Whitney JT9D-3 engines which, according to chairman Randolph Fields, are "per fectly acceptable" for the airline's needs. It will be oper ating seven weekly flights from Birmingham and Stan- sted to Toronto and New York, all via Prestwick. The lower power -3s might have limited payloads operating from Gatwick's shorter run way, says Fields. The 747 will be refurbished to meet CAA regulations by Haeco in Hong Kong at a cost of $7 million. Highland's previous appli cations for route licences have been rejected by the CAA on financial grounds. Fields had to let negotiated options on ANA TriStars expire because, given the cost of modification, the CAA refused to give his airline the go-ahead. A new private financial hearing is scheduled for January 30. The long-running chicken- or-egg argument between Fields and the CAA over which should come first, the licence or the finance, is draw ing to an end. Highland is to make a public offering on February 5 under the Busi ness Expansion scheme which Fields hopes will raise £2-5 million. The privatisation of Prestwick, the only loss- making concern among the seven BAA airports which are due for flotation in spring 1987, should have no adverse effect on the new airline, says Fields. FLIGHT INTERNATIONAL, 1 February 1986
Sign up to
Flight Digital Magazine
Flight Print Magazine
Airline Business Magazine
E-newsletters
RSS
Events
