Delta has announced that it has reached an agreement with Boeing to cancel an order of 18 Dreamliners. Delta had inherited the order via its 2008 merger with Northwest.
Greg May, Delta’s SVP – Supply Chain Management and Fleet, said in a statement that, Delta is one of the world’s largest operators of Boeing aircraft and their valued partnership with Boeing will remain strong as they safely and comfortably serve their customers across the world every day. This business decision is consistent with Delta’s fleet strategy to prudently address their wide body aircraft needs.
The order is valued at more than $4 billion at current list prices. Delta, in its, statement, did not disclose specific terms and conditions of the agreement.
The airline, which acquired Northwest in 2008 for $2.6 billion in shares, said it would continue take delivery of 737-900ER aircraft through 2019.
Northwest had been expected to be the first U.S. airline to fly Boeing’s new-age Dreamliner. The first of its 18 787s — initially ordered in 2005 — were due to arrive in 2008, but production delays at Boeing pushed back the 787’s debut by several years. In the interim, Delta acquired Northwest and deferred Northwest’s order for the Dreamliner before finally moving to cancel it this week.
More broadly, Delta’s official termination of its 787 order comes as a number of global airlines have slowed delivery schedules of new widebody jets amid a glut of capacity in some long-haul international markets that such jets are designed to serve.
