Boeing in talks for landmark Delta MAX order
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After a flight test at Boeing Field Seattle, Washington (USA), June 29, 2020, a Boeing 737 MAX aircraft lands.
Karen Ducey | Reuters
BoeingCo. is moving towards a significant order Delta Air LinesPeople familiar with the situation said that up to 100 aircraft could be purchased for its 737 MAX 10 planes. This model is being fought in separate negotiations to get approval before the year-end rules change, according to people who were privy to it.
If the deal is confirmed it would mark the first Delta order for Boeing’s most-sold single-aisle aircraft family and also the first Boeing major order in over a decade.
It comes as Delta — the only major U.S. carrier without a 737 MAX on order — reshapes its fleet in anticipation of a swift recovery from the pandemic.
Boeing and Delta had a rocky relationship in the past. Now they are working to detail a 100-aircraft order. Some or all of these could be the largest version, the 737 MAX 10 two people stated.
An announcement might be made as soon as next month if there is a contract, according to one person.
Boeing and Delta did not respond to requests for comment.
According to industry sources, negotiations are often very close and there has not been a final decision. There have been rumors about Delta placing a MAX order in the past but there was no agreement.
Airbus’ most popular model, A321neo, is the MAX 10. The planes target the rapidly-growing market of just over 200 seats.
Air Lease, a leasing company, called Wednesday’s A321neo “the hottest airplanes on the market”. While the A321neo has the largest sales lead, Boeing has been awarded a string of lucrative contracts over the past year.
Airbus declined to comment.
Airline Weekly reported that Delta’s Chief Executive Ed Bastian stated in September that there is a spot for the MAX at Delta, if they can figure out how to get them in.
He answered reporters when asked his thoughts on the MAX London earlier this month.
Certification talks
Boeing is a well-known company that has been involved in industrial certifications and other headaches. This deal will cement its position as a key customer to the cash-cow narrowbody.
A separate, but more important battle is underway to get certification for the MAX 10, before a new safety standard regarding cockpit alerts goes into effect.
After the 2018 and 2019 fatalities of smaller MAX models, Federal Aviation Administration introduced a deadline to make changes.
Boeing spoke with some legislators about asking for more time. But, Boeing didn’t seek an extension of its flight deck issues, as the people stated.
A spokesperson for the FAA stated, “Safety determines the timeline of certification project.”
If the FAA fails to certify MAX by end-year, only Congress can extend that deadline.
Boeing discussed with legislators the possibility of a reduction in jobs and production if the 737 MAX 10 was not approved.
Boeing stated in an emailed message that they continue to communicate transparently to the FAA and will provide all the required information. They also expressed their commitment to meeting the requirements to obtain 737-10 certification.
The company did not make any comments on the talks with lawmakers, but stated that it would support “tens and thousands of jobs” at Boeing as well as across its supply chain, which includes Washington.
This issue will likely become a topic of contention during confirmation hearings for the next FAA administrator. Steve Dickson, the current FAA administrator is due to leave office on March 31.
The Seattle Times reported this month that a Boeing submission had been submitted to the FAA. It cited an estimated cost of compliance for the MAX of more than $10 billion.
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