The purchase through France-based Airbus comes as Delta appears to be growing more distant through Boeing amid an intense trade dispute.
Boeing had complained to the Trump administration in which Canadian airplane a new Bombardier sold narrow-body C-Series jets to Delta below market prices in addition to received unfair government subsidies. The U.S. Commerce Department sided with Boeing from the dispute over Bombardier’s planes in addition to recommended a duty of 300 percent on the some 100-seat C Series aircraft.
Delta has repeatedly said the idea might not pay the tariffs on the the plane in addition to said Boeing’s offer was for used planes. In a surprise move in October, Airbus swooped in in addition to said the idea might take a majority stake in Bombardier’s C Series program.
Word of Delta’s Airbus order was reported earlier by CNN.
Delta’s average fleet is usually 17 years old in addition to its decision on fresh single-aisle jets was highly anticipated.
from the midst of the dispute over the Bombardier C-Series planes in October, Delta CEO Ed Bastian told reporters in which the idea hasn’t ruled out purchasing aircraft through Boeing even though the company launched a complaint over the deal.
“Yes, we will be taking more Boeing aircraft,” he said.
Samuel Engel, head of the aviation practice at consulting firm ICF said the idea may not be game over for Boeing.
“the idea’s a loss to Boeing if you think the idea’s a trend yet if the idea’s just one data point, there’s still room for more orders,” he said. “The question is usually: ‘What’s the next order?'”
Big order book
Boeing shares rose 0.7 percent in late afternoon trade Wednesday, little changed after the news of the Delta order broke. The company announced an $18 billion buyback in addition to raised its dividend by 20 percent earlier This specific week, adding fuel to its 2017 rally. Shares are up more than 87 percent so far This specific year.
The aircraft a new features a robust order book with 661 net orders in 2018, most of them for single-aisle 737s.
Boeing features a “very healthy balance sheet in addition to production rate outlook,” said Richard Aboulafia, vice president at aerospace in addition to defense analysis firm Teal Group.
Correction: An earlier edition of This specific article misstated the location of Boeing’s headquarters.