SFGate: Delta selling eight planes, spare engines to shipping giant FedEx

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This article was sent to you by someone who found it on SFGate.
The original article can be found on SFGate.com here:
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inancial1819EDT0362.DTL
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Thursday, September 23, 2004 (AP)
Delta selling eight planes, spare engines to shipping giant FedEx



   (09-23) 15:19 PDT ATLANTA (AP) --
   Delta Air Lines Inc. is selling eight jumbo jets to shipping giant FedEx
Corp.
   The nation's third-largest airline, which has warned of the possibility =
of
a bankruptcy filing, said Thursday the agreement with Memphis, Tenn.-based
FedEx Corp.'s Express division also calls for the sale of four spare
engines for delivery in 2004, besides the McDonnell Douglas MD11 aircraft.
   Terms of the deal were not disclosed. Delta said the agreement is subject
to certain conditions, which it did not specify. Spokesman Scott Brittain
said he could not elaborate beyond the company's statement.
   "The contemplated sale furthers Delta's fleet simplification plans and is
part of the airline's overall transformation plan," said Michael J.
Palumbo, Delta's executive vice president and chief financial officer.
   Besides seeking deep wage concessions from its pilots and trying to
restructure its heavy debt, Atlanta-based Delta also has been reducing its
fleet obligations in recent months.
   In July, the company said it would delay the delivery of 10 aircraft and
cancel its option to buy 113 Boeing Co. planes through 2007.
   That decision was in addition to its plans announced in October 2003 to
sell 11 Boeing 737-800 aircraft that had been scheduled for delivery in
2005. Earlier this month, Delta announced it would cut up to 7,000 jobs
over 18 months and close its Dallas-Fort Worth hub.
   Delta shares fell 13 cents to close at $3.57 Thursday on the New York
Stock Exchange, where FedEx shares were down $1.25 to $83.96.

On the Net:
   www.delta.com

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Copyright 2004 AP

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