Published: Sat, December 16, 2017
Finance | By Loren Pratt

Delta orders 100 Airbus planes in blow to Boeing amid spat

Delta orders 100 Airbus planes in blow to Boeing amid spat

Delta Air Lines' fleet is growing up.

Delta Air Lines says it is ordering 100 Airbus jets valued at more than $12.7 billion with an option for 100 more, a deal that Boeing had hoped to land.

Airbus says it has plans to expand manufacturing at the Alabama plant beyond the four planes now made there each year.

The new 197-seat airliner is part of a strategy to offer bigger single-aisle airplanes on many domestic routes and shorter global flights. The Atlanta-based airline expects deliveries of the aircraft, powered by Pratt & Whitney geared-turbofan engines, to begin in 2020 through 2023.

"With 100 order and 100 options, that pretty well takes care of Delta's single-aisle jet requirements", Hamilton said.

The Airbus deal is a blow to USA plane maker Boeing, which had been reported to be in talks with Delta about buying around 100 of its 737 Max 10 airliners.

The A321neos will replace Delta's 1990s-vintage McDonnell Douglas MD-90 jets, as well as aging Boeing 757 and Airbus A320 aircraft.

The carrier's Airbus jets will be powered by Pratt & Whitney's geared turbofan engines, giving the United Technologies Corp division a boost after a series of manufacturing hurdles, delivery delays and technical glitches with the turbine.

Boeing is in the midst of a bitter trade spat with Bombardier Inc. that has put Delta's order for 75 CSeries aircraft at the heart of the dispute. Boeing persuaded the US Commerce Department to slap 300 per cent duties on the new Canadian plane, contending that Bombardier sold the C Series to Delta at well below cost.

Airbus said the A321neo jets will be manufactured at its production facility in Mobile, Alabama, the same location where Bombardier's USA -bound CSeries jets are expected to be produced.

Toulouse, France-based Airbus highlighted its growing connection to the the announcement, saying most of the new planes would be delivered from Mobile.

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