Northwest Airlines to Purchase Additional Boeing 747s in Effort to Modernize Fleet

Northwest Airlines is planning to buy approximately eight Boeing 747-400s for $1.2 billion in a bid to rejuvenate its aging fleet and improve passenger comfort. The purchase is part of Northwest's strategy to match the level of service offered by its new partner, Continental Airlines, which boasts a younger fleet of aircraft. The average age of Northwest's planes is 20 years, while Continental's fleet has an average age of 14.1 years, according to GRA Aviation Specialists Inc.

Key Takeaways:

• Northwest Airlines plans to acquire eight additional Boeing 747-400s, valued at approximately $1.2 billion, to modernize its fleet.
• The airline is seeking to reduce the age of its fleet, with the average age currently standing at 20 years.
• Northwest's fleet is the oldest among major U.S. carriers, with only Trans World Airlines Inc. having an older fleet.
• The Boeing 747-400 model, which can seat up to 420 people, offers improved comfort and quieter engines compared to older models.
• Maintenance costs for aircraft increase significantly with age, according to GRA Aviation Specialists Inc.
• Northwest is attempting to negotiate a lower purchase price for the 747-400s, taking advantage of typical discounts for larger orders.
• The airline's purchase is part of its efforts to match the service standards of its new partner, Continental Airlines, which has a younger fleet.

Statistics:

• Average age of Northwest's fleet: 20 years
• Average age of Continental's fleet: 14.1 years
• Average age of Trans World Airlines' fleet: older than Northwest's
• Price range for a single Boeing 747-400: $158.5 million - $176.5 million
• List price for a Boeing 747-400: between $158.5 million and $176.5 million
• Passengers carried by Boeing 747-400: up to 420 people
• Number of 747-400s on order for Northwest: four, with deliveries expected between 1999 and 2002

Sources:

• Bloomberg News
• GRA Aviation Specialists Inc.