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Delta Said to Plan Order of 100 Boeing Jets
By Mary Jane Credeur and Andrea Rothman - Aug 22, 2011
Delta Air Lines Inc. (DAL) plans to order 100 Boeing Co. (BA) 737 single-aisle jets, a deal with a list value of about $8.58 billion and a rebuff to Airbus SAS, two people familiar with the matter said.
The purchase would be for 737-900 extended range jets, which carry about 200 passengers, and the Atlanta-based airline’s board will vote on the matter later this week, said one of the people, who wasn’t authorized to speak publicly.
Winning Delta’s business is a boost for Chicago-based Boeing, which lost its exclusive relationship with American Airlines last month as that carrier split an order between the U.S. planemaker and Toulouse, France-based Airbus. Delta had also been an all-Boeing customer until its 2008 purchase of Northwest Airlines added hundreds of Airbus planes to its fleet.
Delta will use the new jets to replace its oldest and least-efficient planes, including some Boeing 757s that are 18 years old on average and MD-88s that are almost 21 years old. The 737-900ER has a list price of $85.8 million, according to Boeing’s website. Airlines typically buy at a discount.
Delta doesn’t comment on its plans for aircraft purchases, said Trebor Banstetter, a spokesman. John Dern, a Boeing spokesman, and Airbus’s Martin Fendt declined to comment.
Shares Advance
Boeing rose $1.68, or 2.9 percent, to $59.22 at 9:52 a.m. in New York Stock Exchange composite trading, while Delta gained 42 cents, or 5.8 percent, to $7.63. Airbus parent European Aeronautic Defence & Space Co. added 56 cents, or 2.7 percent, to 21.33 euros in Paris.
Delta had said in January that it planned to buy 100 to 200 narrow-body jets and seek options for 200 more, with deliveries starting as soon as 2013.
Airbus had been offering its 185-seat A321 against the 737-900, one of the people said.
Sharklets, or special wingtips, are now an option on Airbus planes in the A320 jet family to increase range, making the aircraft a better substitute for the 757 flown by many U.S. airlines on transcontinental routes. Boeing built the last 757 in 2004.
To contact the reporters on this story: Mary Jane Credeur in Atlanta at [email protected]; Andrea Rothman in Toulouse, France on [email protected].
To contact the editors responsible for this story: Ed Dufner at [email protected]; Benedikt Kammel at [email protected].
By Mary Jane Credeur and Andrea Rothman - Aug 22, 2011
Delta Air Lines Inc. (DAL) plans to order 100 Boeing Co. (BA) 737 single-aisle jets, a deal with a list value of about $8.58 billion and a rebuff to Airbus SAS, two people familiar with the matter said.
The purchase would be for 737-900 extended range jets, which carry about 200 passengers, and the Atlanta-based airline’s board will vote on the matter later this week, said one of the people, who wasn’t authorized to speak publicly.
Winning Delta’s business is a boost for Chicago-based Boeing, which lost its exclusive relationship with American Airlines last month as that carrier split an order between the U.S. planemaker and Toulouse, France-based Airbus. Delta had also been an all-Boeing customer until its 2008 purchase of Northwest Airlines added hundreds of Airbus planes to its fleet.
Delta will use the new jets to replace its oldest and least-efficient planes, including some Boeing 757s that are 18 years old on average and MD-88s that are almost 21 years old. The 737-900ER has a list price of $85.8 million, according to Boeing’s website. Airlines typically buy at a discount.
Delta doesn’t comment on its plans for aircraft purchases, said Trebor Banstetter, a spokesman. John Dern, a Boeing spokesman, and Airbus’s Martin Fendt declined to comment.
Shares Advance
Boeing rose $1.68, or 2.9 percent, to $59.22 at 9:52 a.m. in New York Stock Exchange composite trading, while Delta gained 42 cents, or 5.8 percent, to $7.63. Airbus parent European Aeronautic Defence & Space Co. added 56 cents, or 2.7 percent, to 21.33 euros in Paris.
Delta had said in January that it planned to buy 100 to 200 narrow-body jets and seek options for 200 more, with deliveries starting as soon as 2013.
Airbus had been offering its 185-seat A321 against the 737-900, one of the people said.
Sharklets, or special wingtips, are now an option on Airbus planes in the A320 jet family to increase range, making the aircraft a better substitute for the 757 flown by many U.S. airlines on transcontinental routes. Boeing built the last 757 in 2004.
To contact the reporters on this story: Mary Jane Credeur in Atlanta at [email protected]; Andrea Rothman in Toulouse, France on [email protected].
To contact the editors responsible for this story: Ed Dufner at [email protected]; Benedikt Kammel at [email protected].
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