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Delta TechOps Signs Significant Extensions of Three Engine Contracts

FORT LAUDERDALE, April 16, 2008 – Delta TechOps has signed significant contract extensions with three customers from three different continents to continue performing high-skill engine, component and airframe work.  Combined, the three contract extensions will result in more than $800 million in additional revenue over the course of the contracts.

Air Berlin has requested a 10-year extension to the original five-year agreement for off-wing maintenance on CFM56-7 engines which power Boeing 737NG type aircraft.  ABX Air will receive an extension on its current engine repair and maintenance agreement.  GOL Airlines has entered into a 10-year extension for its fleet of CFM56-3 and CFM56-7 engines which power the 737 Classic and 737NG type aircraft, respectively.
“We are very pleased these three airlines have decided to extend their current agreements with Delta TechOps,” said Tony Charaf, president of Delta TechOps.  “We look forward to delivering the same value and positive customer service experience that our customers have come to expect.  The Delta TechOps MRO business is strong and we will continue to build on a platform of growth by delivering a quality product that is on time and on budget.”

Air Berlin entered into the renewed contract with Delta TechOps only three and a half years into their current five-year contract.

“Air Berlin has been very pleased with the overall performance of Delta TechOps and it is for this reason that we decided to extend our contract and solidify our business relationship,” said Siegfried Olivo, technical director at Air Berlin.

ABX Air’s decision to extend the current agreement is a strong signal that Delta TechOps’ Boeing 767 expertise is among the most extensive in the entire MRO industry.

“Delta TechOps played a crucial role in ABX Air’s introduction of converted Boeing 767 cargo aircraft more than ten years ago. Since that time, its continuing support of our extensive fleet of Boeing 767s has been a tremendous benefit to us in providing the high quality service our customers demand,” said Dennis Manibusan, senior vice president of Maintenance and Engineering for ABX Air. “We are pleased to extend our long-term relationship with Delta TechOps – a valued and trusted business partner.”

GOL is one of the largest air carriers in Brazil with a fleet of Boeing 737-700 and -800 type aircraft that is expected to grow to nearly 100 aircraft over the next few years.

“This contract extension came very naturally to us as GOL has been supported by Delta since its first operating days.  During all these years we have received a high quality response from Delta not only in terms of engine restoration but in other MRO services as well.  We are quite sure that our partnership with Delta will continue to produce value to our assets and to our commercial operations,” said Eustaquio Mendes, director of maintenance for GOL.

“The extension of a contract is among the most important compliments you can receive from a customer and we appreciate their faith in our people and in our business,” Charaf said.  “The people of Delta TechOps are directly responsible for producing quality and value for our customers which, in turn, has created the largest airline MRO in North America.”

Delta TechOps is the largest airline MRO in North America, earning more than $375 million in revenue in 2007. Delta TechOps serves more than 100 aviation and airline customers from around the world, specializing in high-skill work such as engines, components, hangar and line maintenance. Delta TechOps employs more than 6,500 maintenance professionals and is one of the most experienced MRO providers in the world with more than seven decades of aviation expertise.

SOURCE Delta Air Lines



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