Forget Boeing! Delta goes with Airbus: $14 billion aircraft order sealed

Keeping the jobs at home? This is not really a priority for US-based Delta Air Lines these days. Champagne is flowing in Europe tonight, after US-based Delta Air Lines committed to spend US$50 billion on aircraft orders not with Boeing, but with rival Airbus in Europe.

Delta had chosen the Airbus A350-900 and A330-900neo to replace older generation Boeing 747 and 767 aircraft starting in 2017 and 2019, respectively.

Both Boeing and Airbus are fighting for their share in the global aircraft market. After Airbus scored with UAE based Emirates and the A380, now Delta adds a $14 billion order for 50 widebody jets from Airbus.

In return Boeing recently scored with Etihad Airways and a firm order for 71 Boeing wide-body aircraft which include 41 787-9s and 30 787-10s.

The order by Delta for 25 state-of-the-art Airbus A350-900 aircraft and 25 advanced Airbus A330-900neo aircraft fits within Delta's existing capacity and capital expenditure plan and continues the airline's focus on making prudent, cost-effective investments in its fleet.

"Delta always approaches fleet decisions with a balance of economic efficiency, customer experience enhancements, network integration and total cost of ownership," said Nat Pieper, Delta's Vice President – Fleet Strategy and Transactions. "The A350 and A330neo support our long-haul, transoceanic strategy and join a mix of Boeing and Airbus aircraft that provide exceptional flexibility for Delta's global network as well as strong cash-on-cash returns for our shareholders."

Airbus A350-900

The long-range Airbus A350-900 will continue Delta's optimization of its Pacific network, operating primarily on long-range routes between the U.S. and Asia. The jets are expected to generate a 20 percent improvement in operating cost per seat compared to the Boeing 747-400 aircraft they will replace. Delta will take delivery of the A350 beginning in the second quarter of 2017.

The A350-900 will be powered by two fuel-efficient Rolls Royce Trent XWB engines.

Airbus A330neo (A330-900)

The widebody A330-900neo, an enhancement of Airbus' successful A330 family featuring greater aerodynamic and economic efficiency, will be deployed on medium-haul trans-Atlantic markets as well as select routes connecting the U.S. West Coast and Asia. The aircraft are scheduled to enter the Delta fleet in 2019 and will deliver a 20 percent operating cost savings per seat over the Boeing 767-300ER aircraft it will replace.

The A330neo features the Rolls Royce Trent 7000 engine which is built with similar technology to the Trent XWB on the Airbus A350.

Delta began a structured fleet renewal in 2011 with the selection of new Boeing 737-900ER aircraft along with Boeing 717s and two-class Bombardier CRJ-900 regional jets, and continued it with transactions for Airbus A321 and A330 aircraft.

Those aircraft are replacing inefficient older technology airplanes, generating substantial cost improvement and increased customer satisfaction. The airline continues to invest in the onboard product and amenities available to customers on its entire domestic and international fleet including installation of transoceanic satellite in-flight Wi-Fi, Delta Studio featuring a library of free streaming programming as well as more than 1,000 on-demand movies, television shows and music on large, high-definition seatback monitors, and other service improvements.