Full article can be read here.
In 2014, Delta Air Lines dealt a blow to Boeing when it selected Airbus to renew the wide body fleet. Market conditions, however, have significantly changed since then and affected the schedule of the deal. In this article, I want to have a look at initial order and timeline and what has changed leading to deferrals.
2014: Delta Air Lines Orders Airbus Wide Bodies
Boeing, which was also in the race for the wide body jet deal, was left in the cold since Delta considered Boeing’s proposed Boeing 777X a paper airplane and the delivery schedule of the Boeing 787 was not attractive enough.
The infographic gives a brief overview of the market value of the aircraft and the delivery timeline. With a catalog value of $15B, the market value of $6.85B indicates a >50% discount, which is to be expected for an order of this size.
The initial delivery schedule indicated 6 deliveries in 2017, 9 in 2018, 6 in 2019 and 4 in 2020. Last year Delta Air Lines deferred 4 aircraft from 2018 to 2019/2020:
With a change in focus on fleet renewal and expansion, another Airbus wide body deferral was to be expected and that happened on May 11th when Delta announced that it deferred another 10 deliveries slated for delivery in 2019-2020 by two to three years.
The new delivery schedule now looks as follows: