Delta seeks OK to sell jets, buy other Boeing aircraft

ATLANTA — Delta Air Lines, which is operating under bankruptcy protection, asked for court permission late Wednesday to sell certain Boeing aircraft and acquire others that are either smaller or have longer ranges as it cuts domestic flights and increases international ones.

The Atlanta-based carrier also is seeking release of $115 million in a blocked account that's being held as collateral as part of certain aircraft agreements.

A hearing on Delta's motion is scheduled for Dec. 20 in U.S. Bankruptcy Court in New York. It has asked that the financial terms of the deal be filed under seal.

Among other things, Delta wants permission to sell 38 Boeing 737-800 aircraft that it has ordered to Babcock & Brown Aviation Finance Ltd. and Aviation Capital Group. Under an earlier agreement with Boeing that Delta is seeking to amend, the airline would have to begin receiving those aircraft in 2008.

Delta, which uses Boeing 737-800 aircraft primarily for domestic flights, said it no longer needs as many of those planes. That's because of its previously announced plans to reduce domestic flights and increase international flights.

Delta said it wants to acquire other Boeing aircraft, specifically 737-700s and certain other models. The Boeing 737-700 aircraft is smaller than the Boeing 737-800 aircraft and will allow Delta to operate more efficiently on certain routes, the airline said in its motion.

"The acquisition of the new Boeing model 737-700 aircraft for Delta's fleet is important for Delta's future operations and business plans because it will open new markets that Delta is not currently equipped to serve profitably," Delta said.