Military

Airbus Trumps Boeing for $13 Billion Delta Order

A350_XWB
Courtesy EADS/Airbus
Boeing Co. (NYSE: BA) is reported to have lost a major order from Delta Air Lines Co. (NYSE: DAL) for 50 dual-aisle wide-body jets to arch-rival Airbus. The order is worth about $13 billion a list prices and includes 25 Airbus A350-900s and 25 A330-900neos, according to reports from Reuters and aircraft industry consulting firm Leeham.

Boeing had proposed to sell Delta its 787-9 Dreamliner and five of its 777-200LRs as a bridge until production slots for the 787 were available. Had Boeing won the order, it would have helped the company fill the production gap the company faces as it transitions from the 777 Classic to its new 777X.

The deciding factor, apparently, was delivery dates. The 787-9 schedule could not accommodate Delta’s delivery requirements, while Airbus was able to shift its schedule to deliver the A350s early. None of the companies involved would comment on the reports.

According to Leeham, Delta is building up an international hub in Seattle and will add the A350 to its flights over the Pacific. The A330 is destined to fly routes over the Atlantic.

Delta currently has 11 A330-200s and 21 A330-300s in its fleet. The airline also flies 10 Boeing 777-200LRs and eight of the 777-200ERs.

Boeing’s shares were down about 0.7% in premarket trading Thursday, at $130.72 in a 52-week range of $116.32 to $144.57.

ALSO READ: Why the 777 May Be More Important to Boeing Than the 787

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.