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Northwest was Boeing's first domestic launch customer for the Dreamliner, but Delta has focused attention in recent years on acquiring more of the more expensive, larger and longer-reach 777 aircraft, already planning deliveries of eight frames in the coming years. Delta, according to a Wall Street Journal report, feels its existing fleet of 767s and the Airbus A330s, which it acquired in the Northwest deal, can serve many of the same routes that the new 787 is designed for. More 777s could help the airline, which has been ambitiously opening up new foreign markets in recent years, add additional ultra-long-range routes on top of its planned or existing service to South Africa and India. The news is not necessarily bad for Boeing, either. A machinist strike and launch hiccups have pushed back the delivery schedule for Dreamliners. Plus, a modification to the Delta order would allow Boeing to book sales of additional 777s, which are priced higher than the 787, and push other 787 customers up in line so that Boeing might be able to avoid or reduce late delivery payments. Delta, which declined comment on specific order plans, would likely keep some of its 787s and might be able to leverage any late delivery fees on the 787s into discounts on its 777s. The airline could buy additional 787s after 2012, when a larger version is expected to be ready for production. But a change in the order could create complications to Delta's relationship with its pilots, who are currently in arbitration trying to generate a combined seniority list for former Delta and Northwest fliers. Northwest pilots could see the move as shrinking their airline's legacy fleet in favor of growing legacy Delta's fleet. While the airline will surely counter that what matters is an expanding fleet -- and therefore more jobs -- at the combined company, lingering hard feelings about these sorts of details have hindered past airline integrations. Given that labor harmony is seen as a key to making the Delta deal a success, anything that rocks the boat could have serious long-term implications for the new world's largest airline. - Lou Whiteman See Wall Street Journal report Lou Whiteman is The Deal's senior writer covering airlines and autos. CategoriesComments Deal Video
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