Delta and Boeing Revise Delivery Schedule

Delta Air Lines announced
today that it has reached an agreement with Boeing to revise its delivery
schedule for Boeing 777 and 737-800 aircraft for the years 2005 through
2009. Delta expects this agreement to reduce its capital spending
requirements by nearly $1 billion for the years 2004 through 2006.
Delta will:—Defer two 777 deliveries,
originally scheduled for 2005, to 2008; (Delta announced on Feb. 10 that
it planned to sell these 777s, but now has elected to defer delivery
instead.)—Defer three 777 deliveries, originally scheduled for 2006, to
2009;—Defer five 737-800 deliveries, originally scheduled for 2006, to
2007;—Accelerate eight 737-800s, originally scheduled for 2008, to 2007;

Finally, Delta has agreed to cancel all of its current option rights to
purchase 777 and 737-800 aircraft for the years 2005 through 2007, and has
agreed to terminate all of its option and rolling option rights to
purchase 757 aircraft. In October 2003, Boeing announced it was
discontinuing production of the 757 at the end of 2004.

Delta currently plans to continue to operate the eight Boeing 777-200s and
71 737-800s in its existing fleet and said it is pleased with the
operational performance of these aircraft.

“Deferring delivery of some aircraft is an important component of Delta’s
program to control capital spending in the current challenging business
environment while continuing to update our fleet appropriately for
improved operating costs and better customer service,” said Michael
Palumbo, Delta’s executive vice president and chief financial officer. “It
is a key component of our goal to rebuild the balance sheet while
improving cash flow.”
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