Delta Air Lines Decides to Purchase Airbus A330 and A350

American airline Delta has decided to replace its aging fleet consisting of Boeing planes with 50 latest Airbus wide-body jets equipped with Rolls Royce engines.

The $14bn deal was confirmed by Delta on Thursday which is clear victory for the European aircraft manufacuter over US based rival Boeing 787 Dreamliner. Delta orders 25 Airbus A350-900 and 25 advanced Airbus A330-900neo aircraft. Rolls Royce will power these planes with Trent engines and long term servicing in a deal worth $5bn.

Delta Air Lines A350

Delta Air Lines A350

This order has given new life to Rolls Royce which has seen fallen in its share price since the start of the year due to cut backs in military spending. Earlier this year, Rolls Royce announced 2,600 job losses as development work on two of its latest engines, the Trent 1000 and XWB, came to an end.

Airbus is reported to deliver its latest A330neo in 2019, ahead of Boeing’s 787 Dreamliner. The A350s will be delivered in Q2 of 2017, will fly routes between the U.S. and Asia and give 20% imporbment in OPEX.

On the other hand, Boeing has suffered a loss as result of this deal. The Dreamliner has become a problem child, causing several delays before its 2011 introduction.

In October, Boeing annouced that it has recieved more than 1,000 orders for Dreamliners from 60 customers around the world.

John Leahy, Airbus’ Chief Operating Officer said: “When the most successful U.S. airline today … says ‘yes we want 50 more of your wide body planes’, you can’t debate the fact that it is a massive endorsement of your product line”

They are expected to give a 20% improvement in operating cost per seat over Delta’s existing aircraft.

The A330neo will fly medium-haul trans-Atlantic routes as well as some routes between the American west coast and Asia.

Source: Bizjournals

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