Delta orders 100 Airbus planes in blow to Boeing

Delta Air Lines announced on Dec. 14 that it has ordered 100 Airbus planes with an option to buy 100 more, in a blow to Airbus’ American rival Boeing.

Delta said it was buying the A321neo aircraft to renew its narrow-body fleet, which have 197 seats and are used for domestic or short international flights.

The Airbus order comes amid public friction between Delta and US giant Boeing over a trade dispute involving a separate Delta deal to buy planes from Canadian company Bombardier.

Airbus deliveries to Delta will begin in 2020 and go through 2023 under the order, worth an estimated $12.7 billion based on the aircraft catalogue price.

Delta said in an investor presentation that the new planes would result in 40 percent fuel savings compared with the jet they are replacing.

“This is the right transaction at the right time for our customers, our employees and our shareholders,” Delta CEO Ed Bastian said in a statement.

Airbus in 2015 opened a manufacturing plant in Mobile, Alabama to build single-aisle planes with an eye towards competing more aggressively in the U.S. market.

Toulouse, France-based Airbus highlighted its growing connection to the U.S. in the announcement, saying most of the new planes would be delivered from Mobile.

“This purchase furthers our commitment to U.S. aviation - a commitment that has never been stronger,” said John Leahy, chief operating officer for customers at Airbus Commercial Aircraft.

“Today, there is more U.S. content in Airbus aircraft than from any other country, with more than 40 percent of our aircraft-related procurement coming from the United States.”