Delta seizes opportunity to keep capex in check through 717 deal with Southwest

Plans by Delta Air Lines to incorporate the 88 Boeing 717s Southwest inherited as part of its acquisition of AirTran Airways reflect the carrier's somewhat contrarian view that it is more prudent to acquire slightly older aircraft that produce overall lower ownership costs. The philosophy runs counter to the belief that purchasing or leasing newer, more fuel efficient aircraft outweighs the cost of capital necessary to operate aircraft younger in age.

The average age of AirTran's 88 717s in 2010, when Southwest announced the acquisition of its smaller rival, was 10 years, which is much younger than the 34-year average age of the DC-9s flown by Delta that are pegged for replacement by the 717s. The 717s are also replacing 50-seat jets, and the larger-gauge aircraft will be more economical than the small jets, whose inefficiency grows as fuel prices climb.