Wednesday, 28 December 2016

Delta Cancels Dreamline Order

Delta Air Lines Inc. scrapped an order for 18 Boeing Co. widebody jets valued at $4 billion at list prices.
The 787-8 Dreamliners had been on Delta’s order book since its 2008 merger with Northwest Airlines. The Atlanta-based carrier said it had reached an agreement with Boeing on the cancellation, without disclosing terms. It will continue orders already in progress for 120 narrowbody Boeing 737-900ER, Delta said in a statement Tuesday.

“This business decision is consistent with Delta’s fleet strategy to prudently address our widebody aircraft needs,” Greg May, Delta’s senior vice president of supply chain management and fleet, said in the statement.
The cancellation furthers a trend of major U.S. airlines either deferring or canceling orders of widebody jets, the long-haul aircraft that have two aisles. Delta earlier this year deferred taking four Airbus Group SE A350s until 2019 and 2020, instead of the originally scheduled 2018. The 787s have a list price of $224.6 million, although large discounts are customary for major airlines.
“We’ve been working closely with Delta as their needs have evolved since inheriting the order from Northwest,” said John Dern, a spokesman for Chicago-based Boeing. “Delta is a valued customer and we continue working with them to meet their future fleet requirements. Customer interest in the 787 continues to be strong, with almost 1,200 orders to date.”

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