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UPDATE 1-Delta in talks to acquire dozens of small narrowbody jets - sources

Published 2016-04-07, 10:39 a/m
© Reuters. UPDATE 1-Delta in talks to acquire dozens of small narrowbody jets - sources
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PARIS/MONTREAL, April 7 (Reuters) - Delta Air Lines (NYSE:DAL) DAL.N
is in talks with planemakers that could lead to the acquisition
of dozens of small narrowbody jets, industry sources said.
The Atlanta-based airline has said it needs to phase out as
many as 120 older aircraft as it trades up from regional to
larger mainline jets with 100 or more seats.
Industry sources said Canada's Bombardier BBDb.TO is
pushing particularly hard for a deal for its struggling new
CSeries aircraft after losing out to Boeing (NYSE:BA) BA.N at United
Airlines UAL.N earlier this year.
A U.S.-based Delta employee who spoke on condition of
anonymity said Bombardier executives were in Atlanta this week.
He could not say whether Delta would buy the CSeries because
the "negotiations are ongoing".
It was not immediately clear how widespread the talks were
at this stage, nor whether the airline had yet decided on the
shape or size of a potential order, which some industry sources
estimated could involve as many as 50 to 100 aircraft.
"Delta has been evaluating new and used aircraft acquisition
opportunities in the roughly 100-seat gauge as we've continued
to replace our 50-seat regional fleet with larger, more customer
friendly mainline aircraft," an airline spokesman said.
Last month Delta CEO-elect Ed Bastian told a JPMorgan (NYSE:JPM)
investor conference that it would need more small narrowbody
planes in the same category as the 110-130-seat CSeries.
"We have 120 MD-80s that need to be retired over the next
five years. So ... there's still a considerable need there."
Such a deal could be attractive for Bombardier, Embraer
EMBR3.SA of Brazil, as well as the smaller types of Airbus or
Boeing jetliners. None of the planemakers agreed to comment.

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