Delta Airlines places orders for 37 A321 from the Airbus Group SE

The deal is worth $4.25 billion. In addition to this, it has also placed an order for 75 CS100 aircrafts from Bombardier Inc.

In order to help replace its ageing fleet of aircrafts, Delta Airlines has reported that it has ordered 37 current generation A321 jets from the Airbus Group SE worth $4.25 billion at its list price.

The new A321 jets will be delivered through 2019 will boost the number of A321s Delta already has in its fleet of aircrafts to 82, said the airlines in its news release.

This move will help Delta Airlines, the second biggest U.S. airlines by traffic volumes, to retire its ageing 116 year old MD 88 aircrafts, which typically seat 149 people. The new planes have a seating capacity of 185 people.

Airlines normally enjoy a 40% or more discount on aircrafts from their listed prices.

“The order for the A321s is an opportunistic fleet move that enables us to produce strong returns and cost-effectively accelerate the retirement of Delta’s 116 MD-88s in a capital efficient manner,” said Ed Bastian, who is about to sit at the help of Delta Airlines, in the press release.

This news comes in the wake of Delta ordering a feet of 75 CS100 aircrafts from Canadian plane manufacturer, Bombardier Inc., which will significantly boost its industry profile in its long road to breakeven and profitability.

Categories: HR & Organization, Strategy


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