Executive Briefings

Delta Cancels Order for 18 Dreamliners

Boeing Commercial Airplanes has settled terms with Delta Air after the carrier cancelled an order for 18 Boeing 787-9 Dreamliner jets, a contract worth $4bn at current list prices.

Delta Cancels Order for 18 Dreamliners

Delta had inherited the purchase commitment from Northwest Airlines, the rival carrier it acquired in a $2.6bn share-exchange in 2008. Subsequently, in 2010, Delta negotiated a deferred delivery on the planes until after 2020.

The specific terms of the Delta-Boeing settlement were not announced, but the airline noted it would take delivery of 120 new 737-900ER aircraft, through 2019.

“This business decision is consistent with Delta’s fleet strategy to prudently address our widebody aircraft needs,” said Delta senior vice president Greg May.

While Delta also deferred delivery for four Airbus A350s earlier this year, from 2018 to 2019-2020, it still has orders for 25 of those widebody jets, as well as 25 A330neo jets.

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Delta had inherited the purchase commitment from Northwest Airlines, the rival carrier it acquired in a $2.6bn share-exchange in 2008. Subsequently, in 2010, Delta negotiated a deferred delivery on the planes until after 2020.

The specific terms of the Delta-Boeing settlement were not announced, but the airline noted it would take delivery of 120 new 737-900ER aircraft, through 2019.

“This business decision is consistent with Delta’s fleet strategy to prudently address our widebody aircraft needs,” said Delta senior vice president Greg May.

While Delta also deferred delivery for four Airbus A350s earlier this year, from 2018 to 2019-2020, it still has orders for 25 of those widebody jets, as well as 25 A330neo jets.

Read Full Article

Delta Cancels Order for 18 Dreamliners