Delta Air Lines announced (04-Sep-2013) a firm order for 30 A321ceo and 10 A330-300 aircraft in a deal worth USD5.6 billion at list prices. The A321s will be powered by CFM International CFM56-5B engines, and the A330-300s by GE Aviation CF6-80E1 engines. The order represents the carrier's first with Airbus in two decades. Delta's agreement with CFM International includes spare engines and a replacement parts agreement, while its agreement with GE Aviation includes a long-term 'OnPointTM' solution services agreement. The carrier will receive the first A330 in spring 2015, with a total of four A330s due for delivery in 2015. A further four will be delivered in 2016 and the final two in 2017. The A330s will feature 34 lie-flat seats in 'BusinessElite', 32 premium economy and 227 economy seats. The carrier will be the first to operate the 242-metric ton A330-300 which offers additional payload capacity and range, with Delta to deploy the equipment on its Pacific and Atlantic routes. Three A321s will be delivered in 1Q2016, with a further 12 scheduled for delivery in 2016. The remaining 15 will be delivered throughout 2017. The A321s will feature sharklets, with 20 first class, 22 premium economy and 148 economy seats. Many of the A321s will be constructed at Airbus' under-construction assembly line in Mobile, Alabama. Delta Air Lines CEO Richard Anderson said: "This Airbus agreement is another opportunistic fleet transaction for Delta in which we acquire economically efficient, proven-technology aircraft. These A330s and A321s will provide tremendous flexibility for Delta to optimally manage our capacity over the next five years while further improving the flight experience for our customers and returns for our shareholders." Delta Air Lines CFO Paul Jacobson said: "Disciplined capital deployment is a cornerstone of Delta's comprehensive financial plan. These Airbus aircraft will generate free cash flow and improve our return on invested capital from the time they enter service." Airbus COO customers John Leahy said: "We have longstanding partnerships with the Delta team. Nonetheless, this is the first-ever Delta order for our modern family of comfortable and efficient A320 and A330 aircraft. We look forward to seeing the growth of the Airbus fleet at Delta meet and exceed the needs of the airline’s customers and employees for many years to come." [more - original PR - DAL] [more - original PR - Airbus] [more - original PR -_CFM] [more - original PR - GE]
Delta Air Lines places firm order for 30 A321 and 10 A330-300 aircraft
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This is Part 1 in a two part series on Air Canada. The second instalment will focus on the airline’s costs and balance sheet management.