Delta TechOps, the maintenance arm of Delta Air Lines, is planning to ramp up third-party work again after a period of focusing on its parent’s fleet.
Due to the mismatch between aircraft supply and rocketing passenger demand, Delta has been forced to keep older aircraft in the air for longer, placing additional demands on the TechOps team, said Chief Financial Officer Dan Janki in an earnings call.
However, he highlighted this as a key competitive advantage for the airline group at a time when many of its rivals are struggling to find capacity.
“Given the constraints in the industry around the OEMs, [we] have leaned into restore the network into our flex fleets—so, flying 80 [Boeing] 717s [and] flying the 757s longer than we anticipated,” he said. “That puts demand on our TechOps teams and their ability to ensure that we have those aircraft [and] that they're reliable.” He added that the strategy “really allows us to flex and be more nimble.”
Janki noted that Delta didn’t retire any aircraft in 2022 and 2023, but that it will return to “more normalized” patterns of phase-outs in the second half of this year, recycling material as it does so for optimal efficiency.
“That's really where our team has always shined: the ability to naturally retire but then recoup that equipment and reuse that used material and run out the fleets,” he said.
As supply chain and fleet challenges ease, Delta TechOps also expects to add more external business.
“Going forward in the next couple of years, that's going to start turning back on again,” said CEO Ed Bastian. “Our ability to capture that business [third-party MRO work] is going to be even stronger than we were thinking pre-pandemic, given what we've all been through. So, hats off to the TechOps team. A lot more work to go, but we are absolutely on the right path.”
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