Military

Delta Raises Airbus Order, Boeing Shut Out

Delta Logo
courtesy of Delta Air Lines
Delta Air Lines Co. (NYSE: DAL) announced Monday morning that it has agreed to purchase 15 A321 aircraft from Airbus Group for delivery beginning in 2018. The A321 competes with the some models of the 737 from Boeing Co. (NYSE: BA). The latest order brings Delta’s total order for the A321 to 45.

Based on list prices, the order is worth $1.65 billion. Delta placed an order for 100 Boeing 737-900ER aircraft in August 2011 for delivery between 2013 and 2018. That order was worth about $8.5 billion at list prices.

Airbus is also competing with Boeing for an order from Delta for up to 50 wide-body jets to replace some of the airline’s 747s. Boeing’s 777 and 787 are competing with the Airbus A330 and A350 models for an order that could be worth $16 billion at list prices to Boeing and $12.3 billion to Airbus at list prices. Which aircraft maker wins this contract likely will depend on how much Boeing is willing to discount its $320 million 777-300ER. If Delta cannot get the price it wants, it has now demonstrated that the airline will buy Airbus planes.

Delta shares were up 1.1% just before noon on Monday, at $40.36 in a 52-week range of $16.94 to $40.69.

Boeing shares were down fractionally, at $135.20 in a 52-week range of $96.31 to $144.57.

ALSO READ: Boeing 737 Challenger Fails

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