Delta Selling Eight Planes to FedEx
Updated from Sept. 22
Let the asset sales begin.
Delta Air Lines (DAL) has arranged to sell eight MD-11 aircraft to FedEx (FDX), TheStreet.com has learned. The deal could net more than $200 million for the airline, buying it time to negotiate wage concessions from pilots as bankruptcy looms.
In a Wednesday morning conference call discussing first-quarter earnings, FedEx management said it would boost its annual capital spending budget by nearly $400 million to $2.1 billion. Execs added that the company would use the money to fund an "opportunistic purchase of eight MD-11 passenger aircraft in excellent condition at attractive prices."Delta didn't immediately return a call seeking comment, and FedEx declined to comment. But people close to the sale say that Delta could be revealed as the mystery seller by the end of the week.
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