With Travel Non Existent Delta Is Retiring The Boeing 777
Just a few weeks after Delta announced that they would be retiring their old and dated MD-88 and MD-90 planes in June they are making some more changes to their fleet. They will be phasing out their Boeing 777 aircraft, removing them completely from service by year end.
With travel at lows we haven’t seen in over a half century airlines are looking to retire old planes and streamline their fleet. Delta added the Boeing 777 to their fleet in 1999 and the total has grown throughout the years to 18 aircraft.
Delta has been removing planes from the fleet all while they have 650 planes parked throughout the world waiting for travel to pick up. While parking a fleet of planes can be expensive from a maintenance standpoint retiring these planes should bring a savings from a tax standpoint. Fox Business reports that the move to retire the 777 and MD-88 and MD-90 aircraft will result in second quarter non-cash impairment charges of $1.4 billion to $1.7 billion, before tax.
It is crazy to think that just a few months ago airlines were canceling flights because they didn’t have enough planes thanks to the Boeing 737 MAX issues. News just came out that Airbus would be slashing staff and restructuring as well. Things can and have changed quickly.
I think that when we get to the other side of this pandemic that airlines will be more streamlined, more modern and quite a bit smaller. Hopefully all of those seats repaired with duct tape or still have a cigarette ashtray will be a thing of the past. It could be one of the few nice things that comes from this whole situation.