Delta Air Lines ordered 100 Airbus A321neo jetliners, a deal with a list value of US$12.7b, in a major victory for Airbus over Boeing. Deliveries of the single-aisle planes will begin in early 2020 and the transaction includes options for an additional 100 aircraft, Delta said Thursday. The airline’s decision dealt a setback to Boeing’s efforts to sell its newest 737 model, the Max 10. The A321neo is “the best narrow-body product in the sky,” Delta CE Ed Bastian said. Delta is turning to Airbus to overhaul its short-range fleet 3 years after placing an order of long-haul jetliners with Airbus. In recent months, the airline has been battling Boeing in a trade dispute involving a separate plane, Bombardier’s C Series. The US manufacturer persuaded the Commerce Department to slap 300% duties on the new Canadian jet. <br/>
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Delta Air Lines' new order for Airbus jets shows that it’s sometimes the side dish, not the main entree, that helps land a blockbuster deal. In announcing a purchase of 100 planes, Delta also said it would become a major maintenance provider for the Pratt & Whitney engines powering the aircraft. That opens up a new revenue stream for the airline’s TechOps unit, which serves other airlines in addition to Delta. Pratt, a unit of United Technologies Corp., has committed to use TechOps for more than 5,000 engine repairs and overhauls. That helps create a US$15b sales opportunity in the long term, Delta CE Ed Bastian said Thursday. Whether the projection pans out remains to be seen. By comparison, Delta’s order of A321neo planes carries a list value of $12.7b, before the discounts that are customary for aircraft purchases. <br/>
Kenya Airways expects second-half revenue to decline after violence during the country’s protracted presidential elections scared off passengers, CE Sebastian Mikosz said. Travellers canceled bookings as a rerun of the vote and court disputes over the outcomes stretched over 3 months, Mikosz said Wednesday. The impasse triggered violence that left at least 80 people dead, according to human-rights groups. “We forecast a big impact in terms of revenue,” Mikosz said. “We are going to have a huge impact on the second half due to the fact that there were several weeks of uneasiness.” The drop in income comes as the carrier pursues a turnaround plan to return to profit after it posted a record loss last year <br/>