Originally Posted by
jrkmsp
In today's earnings call for Delta, Richard Anderson was asked about the expected widebody airplane order. After talking about the "fierce" competition between Airbus and Boeing, and Rolls and GE on the engine side, RA took a moment to talk about the "used widebody market" heating up, with all of the new widebodies entering the market.
He went on to say that 10-year-old widebodies are going for just "30 percent" of what you'd expect to pay for something new. So, hard to say whether he was trying to squeeze Boeing and Airbus for a little bit better pricing or was actually tipping that some new order of used widebodies is on the way. Maybe Delta is looking at picking up some lightly used 77Ws?
Interesting, Delta also said they'd save $100M next year from retiring the 744s, compared to a ~$400M charge for retiring the four early.
Does this mean that $400M is the cost of terminating a lease early for the four 747s that were sent to rest?
I don't see the logic of paying $400M now to save $100M next year and giving up some assets in the process but I'm not an accountant.