Delta to buy 100 Being 737 MAX 10 planes

 

Delta Air Lines announced on Monday that it will purchase 100 Boeing 737 MAX 10 jets worth approximately $13.5 billion at list prices, with options to purchase an additional 30.

Reuters reported in March that Delta was on the verge of ordering 100 MAX 10 planes, and that Airbus was in talks with Delta to expand an existing order of A220 planes.

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Delta said at the Farnborough Airshow that it would begin receiving MAX 10 deliveries in 2025. Delta was previously the only major US airline that did not have a MAX in its fleet or on order. After two fatal crashes killed 346 people, the MAX was grounded for 20 months. After software updates, the grounding was lifted in November 2020.

"This is a huge testament to the value of the MAX," said Ihssane Mounir, Boeing senior vice president of commercial sales and marketing, at a signing ceremony. "What a great recommendation from a world-class airline."

Since the ungrounding, Boeing has seen "strong demand" for the MAX, with over 1,000 gross orders and 1.7 million flight hours, according to Boeing Commercial Airplanes CEO Stan Deal.

Delta's Boeing 737 fleet will grow to more than 300 aircraft, making it the company's second-largest fleet family after the Airbus A320.

Separately, Reuters reported that Delta will sign a top-up order for around a dozen Airbus A220s as early as Tuesday at the air show.

Boeing has until December to obtain approval for the 737 MAX 10, the largest member of its best-selling single-aisle plane family. Otherwise, unless Congress waives it, it must meet new cockpit alerting requirements under a 2020 law.

In an interview published this month, Boeing CEO Dave Calhoun stated that the planemaker may be forced to cancel the 737 MAX 10 due to potential regulatory issues. Boeing Commercial Airplanes CEO Stan Deal stated on Sunday that canceling the MAX 10 was "not a high probability path."

Delta stated that if certification is delayed, "the agreement has adequate protection in place, including the ability for Delta to shift to another model of the MAX family if necessary."

Delta and Boeing had extensive discussions before agreeing to the deal. "It took us a long time to get here," Delta senior vice president Mahendra Nair said, adding that if the MAX 10 does not move forward, the airline has other options. "This is the airplane that we would want, and we hope that Boeing can get the certification extension that they require."

The MAX 10 aircraft will be 20% to 30% more fuel efficient than the Delta planes it will replace.

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