Boeing gets boost with Delta order for workhorse aircraft

Bloomberg

Boeing Co announced a firm order for 100 of its 737 Max 10 jetliners from Delta Air Lines Inc, its opening salvo at the Farnborough Airshow that the US planemaker hopes will provide a boost after it fell behind arch-rival Airbus SE.
The purchase includes an option for 30 additional jets, the companies announced at the event. Should Delta convert the options into firm orders, the deal has a value of about $17.6 billion, though customers typically get steep discounts on large purchases.
Delta’s commitment to the final and largest member of Boeing’s narrow-body jet family provides a much-needed respite for the US manufacturer. Airbus has grown its heft in the past decade to conquer close to 70% of the narrow-body segment, by far the most widely used aircraft category.
“We always take pride in the quality of our customers and how good they are at their trade and then therefore what that says about the evaluation of our airplane vis-a-vis whatever we compete against,” Chief Executive Officer Dave Calhoun said. “It’s a persuasive case, across the board.”
Boeing, meanwhile, is battling on multiple fronts: there are quality issues with its 787 Dreamliner, questions over the regulatory approval of its Max 10 aircraft and the need to make sales of the 737 Max after a lengthy grounding following two fatal crashes. The giant successor to the 777 is years behind schedule.
With the deal announced, Delta is endorsing the current cockpit design of the Max 10, at a time when Boeing has come under pressure for alterations that would give pilots an electronic system to monitor warning signals. If the Max isn’t certified by late December, Boeing would be required to make the costly change unless Congress intercedes.
Boeing’s CEO has said Delta has flexibility to switch to other models should Boeing run “into a regulator buzz saw” with the aircraft, though he said the airline was never deterred by the possibility that the model might be cancelled.
“We have to make our case and it has to be persuasive — and we believe it is,” Calhoun told CNBC about the regulatory hurdles the Max 10 faces.
Calhoun has said the company would consider axing the jet altogether if it were forced into the redesign, which would make it difficult for airlines to swap pilots between the Max 10 and other 737 models. Delta said today that “pilot commonality” was the main reason for choosing the aircraft.
The Farnborough air show alternates with Paris each year as the biggest aviation event, and there’s typically a flurry of orders announced on the first two days. Atlanta-based Delta is also preparing to order a dozen of Airbus’s A220 jets, topping up an earlier deal.