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UPDATE 2-Delta orders 37 Airbus A321s worth $4.25 billion

Published 2016-04-29, 11:08 a/m
© Reuters.  UPDATE 2-Delta orders 37 Airbus A321s worth $4.25 billion
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(Adds Delta comments about Boeing (NYSE:BA))
By Jeffrey Dastin
ATLANTA, April 29 (Reuters) - Delta Air Lines Inc (NYSE:DAL) DAL.N
said on Friday it has ordered 37 current-generation A321
aircraft from Airbus Group SE AIR.PA worth $4.25 billion at
list prices, a move that will help it replace aging aircraft.
The new jets, set to be delivered through 2019, add to A321s
Delta already has on order, boosting the carrier's fleet of
these planes to 82, the airline said. Airlines typically enjoy
discounts of 40 percent or more on aircraft list prices.
The announcement comes a day after Delta ordered 75 CSeries
aircraft from Bombardier Inc BBDb.TO , boosting the Canadian
planemaker's backlog, even as it faces a long road back to
profitability. Delta also said on Friday it did not
plan to buy Boeing Co BA.N planes in the near future.
The Airbus purchase will help Atlanta-based Delta, the
second-largest U.S. carrier by traffic, achieve its planned
growth while retiring 116 old MD-88 aircraft, which seat 149
people. The new planes can seat 185 people, the airline said.
"The order for the A321s is an opportunistic fleet move that
enables us to produce strong returns and cost-effectively
accelerate the retirement of Delta's 116 MD-88s in a capital
efficient manner," Delta's incoming Chief Executive Ed Bastian
said in a news release.
Reuters reported earlier this month that Airbus was nearing
a deal to sell Delta the 37 jets.
Bastian told reporters in Atlanta that the airline had no
current plans to buy Boeing planes.
"At the present time, I'd say we're not in the market,"
Bastian said. "There's not a significant domestic need ...
There's not an international need as well."
While Delta talks frequently with Boeing, he said, "their
product and the commercial offerings did not match what the
CSeries was providing us, and they did not match the (Airbus)
321s, and Boeing was at the table at every one of the contests
that we had."

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