Odds and Ends: Delta’s small jet deferral and other things

  • Delta Air Lines deferred the highly anticipated order for the 100-150 seat airplane due to worries about taking on too much debt in the current economic environment. Multiple sources say Bombardier’s CSeries had been favored over the Embraer E-195.
  • Delta’s RFP from Boeing didn’t include the re-engined airplane because at the time of the RFP, the 737RE didn’t exist. But we are 99% certain conversion rights will be in the final contract.
  • The Airbus A321neo does have its promised EIS until 2017, and Airbus was unlikely to be able to offer production slots for this model until 2019. Delta wants all aircraft delivered by 2018 and Airbus couldn’t meet this with the A321 Legacy, either. Plus the price was higher.
  • At 10:50am PDT our readership YTD exceeded all of 2010.

13 Comments on “Odds and Ends: Delta’s small jet deferral and other things

  1. Congrats for your readership readings. It confirms that you are doing a good job 😉

  2. Congrats from me as well Scott an I am happy to have been able to contribute!

  3. Great Job Scott. I also extent my congratulatory note to you and the people that make it happen at Leeham News and Comment!!

  4. I agree with all above, congradulations Scott.

    It is interesting that DL is leaning towards the CS-100 and CS-300. If that happens it would be good news and a great relief for BBD.

  5. My congratulations and appreciation as well. And, what do you think of my 717 theory re the DL 739s, #21 in the immediately prior blog?

  6. Kudos for getting the visibility and readership up on this blog in 2011…

  7. Excellent readership results & vindication of those professional or otherwise who identify your source as being primarily accurate & more importantly impartial, a deeply arduous task.

    You don’t appear to be the type of chaps who revel in your own success, just don’t get smug & let those standards slip.

    Returning to Delta’s proposed 737NG purchase your summary highlights the risk in purchasing one hundred NG airframes without RE conversion rights, such a decision would be tantarmount to commercial suicide, albe’it currenty without any realistic operational costs, a desperate situation indeed.

    Had NEO availability not been sold out boeing would be in deep doo doohs.

  8. Scott, I echo all the other congratulations, easily the best aviation blog going.
    Just thinking about a Rudy Hillinga comment about the direction Boeing is taking.
    Wearing a typical beancounters hat, is it at all conceivable that the Boeing BOD may say that with 100+ 737NG from AA and 100 from Delta, plus a few others, why “waste money on a 737RE, when customers are still prepared to by the existing product?

  9. I have mentioned a couple of times that Boeing wasn’t in as deep a pile of it as everybody else had considered. That Delta didn’t order any Airbus aircraft make things all that much more interesting for the upcoming competitions. I am still interested to see how the Soutwest deal turns out, despite what they have recently stated. Strange that the airlines making the biggest fuss about early deivery slots seem to be waiting the longest to make orders (e.g. Delta & SW).

    I am also curious to see how any future Ryanair order will play out. The expansion seems to still be on hold but the man must want to order more planes sooner or later, one would think. Russia, China or stick with Boeing? Based on his comments about the price of his last purchase, it does not sound like Boeing would lose much if he bought his planes elsewhere.

    • Airbus is already out of the SW deal, usually Airlines like to play both OEMs against each other even if they’re not really interested, but SW flat out admitted that they’re only working with Boeing. I don’t see them going to Bombardier, Russia or China. That one is a lock on for Boeing imo, any other result will probably be a shock on the level of the AA Airbus order.

      I actually think the most interesting is the UA/CO order, now that we know Boeing is now willing to go lower than Airbus when it comes to pricing and the NEO might be sold out.

  10. It seems this order will be seriously influenced by slot availability.

    A large Bombardier order would stir up competition enormously.

    Delaying further orders & placing a 737 order seriously enhances Delta’s negotiating position in further negotiation with Airbus, Boeing and Bombardier. I expected DL (NWA) to come up with an unexpected strategy like this (although not this one!)

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