Airbus Group NV (AIR) Ahead of Boeing Co (BA) In Delta Air Lines, Inc. (DAL)’s 50 Jet Order

Airbus Group NV (AIR)

Airbus Group NV (EPA:AIR) is likely to win against Boeing Co (NYSE:BA) in Delta Air Lines, Inc. (NYSE:DAL)’s 50 Jet order. The overall deal is valued at $13 billion and Airbus is at the front with its efficient jet portfolio.

Airbus Group is likely to consider this deal an indication of Delta Air Lines’ inclination towards the company over their previous jet provider, Boeing. According to the sources, this deal would include A330neo and A350-900 planes from Airbus and Delta Air Lines, Inc. (NYSE:DAL) is likely to make an announcement as soon as next week. The airliner ordered 40 planes from Airbus in 2013 with net transaction value of $5.6 billion.

This is not the first time in recent months when Airbus Group NV (EPA:AIR) succeeded over its rather stronger rival Boeing Co (NYSE:BA). Earlier this week, the national airline of Morocco, Royal Air Maroc, said that A380 from Airbus is in place to compete against the Boeing 747 superjumbo jet. The jet is likely to undertake Hajj trips and Airbus is all set to bag a new buyer for A380 lineup.

Airbus Group NV (AIR)

Among other news, Airbus Group NV (EPA:AIR) announced new base design for its Beluga Transport fleet. The earlier Beluga fleet was designed with extensive modification of the A300 model but the company is likely to replace it with widebody A330 jet. The company is under extreme pressure to increase production of A350 long-range jets and A320 single-aisle planes.

Airbus Group is likely to use as many A330 body parts as possible and these 5 Beluga jets would be ready by 2025. The airplane manufacturer said,

“The distinctive looking lowered cockpit, the cargo bay structure and the rear-end and tail will be amongst the items which will be newly developed.”

It arch rival Boeing Co (NYSE:BA) uses 747 Jets (modified) for the production of its 787 Dreamliner jets.

This article has been written by Prakash Pandey.

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One Comment;

  1. GarryGR said:

    Prakash, since Delta took over NorthWest, who was an Airbus customer, Delta has been ordering Airbus planes, so that’s not a big surprise; and Boeing still has a significant lead in orders, for the year. It was reported elsewhere that Delta needed the planes sooner than Boeing could deliver 787s and 777s to them and that that was the primary reason they went with Airbus. Airbus hasn’t overtaken Boeing in orders, as one might think from the headline. Airbus is not likely to do that this year, although, as I like to point out, aircraft orders are not what many might think, based on other businesses. Both Airbus and Boeing are taking orders for delivery in and after 2020! And that’s then the planes are paid for. It’s a normal part of the aircraft business for there to be order cancellations; this year, Airbus cancellations are approaching 300! One airline, I forget which one, is even saying they might be forced into bankruptcy, unless Airbus allows them to cancel without paying the contractual penalty. They can’t afford to pay the penalty, much less come up with the money to take delivery of the six A380s! So, those are examples of why aircraft orders are not as meaningful as in orders in other businesses. Another is that Airbus has a larger order backlog than Boeing but Boeing has been delivering more planes than Airbus, since 2012, and will do so again this year.

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