Delta Pilots Deal Title: Delta Pilots Deal Allows Large Increase In 70-Seat Flying
Impact: Positive
Details & Analysis: Aviation Daily, a trade publication, is reporting that Delta's new deal with its pilots allows for rapid growth in its fleet of 70-seat regional jets. Pilots at Delta ratified a five-year deal earlier this month to help the carrier avoid bankruptcy. The old agreement capped Delta 's 70-seat flying at 58 planes. According to Aviation Daily, one of the regional feeder's pilots union recently told its members that scope changes in Delta 's contract call for adding 82 70-seat RJs next year, 106 in 2006 and 125 per year from 2007 to 2009. Although there are still some concerns that Delta may file for Chapter 11, which puts current deliveries at risk and would delay any potential new orders for 70-seat RJs, a large 70-seat order from Delta with the planned delivery schedule mentioned above would be positive for Bombardier's backlog. We are maintaining our Market Perform rating.