Delta has ordered 100 new jets from Airbus, whose CEO said most of them will be built in Alabama.
According to information released Thursday by Airbus, Delta placed an order for 100 A321neo ACF aircraft. The company often opts not to specify what jets will be built where, but Airbus CEO Tom Enders was clear in this case.
"We at Airbus are very happy we won this hotly-contested campaign, together with our partner Pratt, and we are proud to serve Delta with the A321neo. This important order will further strengthen our partnership with Delta - one of the world's best airlines - which we have developed over many years." Enders said in an Airbus news release. "It is also good news for our employees in Mobile, Alabama, where most of the Delta planes will be manufactured. We look forward to seeing the A321neo ACF flying in Delta colours soon."
The neo suffix stands for "New Engine Option," meaning next-generation engines with greater fuel efficiency; ACF refers to a new cabin layout with door and fuselage changes that allow the jets to carry up to 240 passengers.
The Airbus Final Assembly Line (FAL) in Mobile has built Delta jets but hasn't yet produced any neo-powered aircraft. However it has been the plan all along for neo jets to be added to the production mix. Kristi Tucker, director of communications for Airbus Americas, said Thursday that the Mobile FAL will deliver its first neo-powered jet in 2018.
The Airbus statement contained other news of interest, indicating that the Mobile FAL has hit a production benchmark of "Rate Four," which has been a target since it opened in 2015. "The Mobile factory produces four aircraft per month for delivery to Airbus' U.S. customers," said the statement. "Plans for further production ramp up are currently being discussed."
Some industry sources saw the Delta deal as a blow to Boeing. CNN Money reported that Delta had considered purchasing 100 of that company's 737 Max 10 jets. Reuters likewise described the deal as a loss for Boeing and reported that the 100-jet purchase included an option for another 100.
According to the Reuters report, Delta Chief Executive Ed Bastian declined to say whether they decision had been affected by a trade dispute between Boeing and Canada-based Bombardier, as some industry observers speculated.
When Delta ordered 75 of Bombardier's new C Series jets in 2016, it led Boeing to file a trade complaint alleging that Bombardier's prices were subsidized by Canada. A preliminary ruling called for a 300 percent tariff on imported C Series jets, and a critical hearing in the case is coming up on Monday.
Meanwhile, Bombardier and Airbus have announced a partnership to build the jets, and have said they plan a new assembly line in Mobile.
The new Delta purchase, like the trade dispute, may have far-reaching consequences. The Reuters report said that "Delta's decision also gives lift to United Technologies subsidiary Pratt & Whitney, which the carrier said had won the contract for the engines that will power the A321neo aircraft."
Another United Technologies subsidiary, UTC Aerospace, has a major operation in Foley, where it takes engines and attaches their cowls and thrust reversers so that they can be installed. That plant prepares engines for the Airbus FAL in Mobile, and recently dedicated a major expansion built to handle neo engine work.