Wednesday, August 31, 2011

Did Delta get a 51% discount on its 737-900ER deal?: Delta-737-900ER-tail_560.jpgIntrepid blogger Dan Webb detailed a few big additions to Delta Air Lines' SEC filing today, noting the inclusion of aircraft purchasing commitments for the 100 Boeing 737-900ERs the airline firmed up last week.





  • Delta now has "total aircraft purchase commitments of $6.8 billion, including $55 million for the six months ending December 31, 2011, $210 million in 2012, $540 million in 2013, $760 million in 2014, $770 million in 2015, $780 million in 2016 and $3.7 billion after 2016."


  • For comparison's sake, in its 10-Q Delta reported $2.6 billion in aircraft purchase commitments as of June 30. This number included $30 million in the second half of 2011, $70 million in 2012, and $2.5 billion from 2020 to 2022. Those figures "relate to 18 B-787-8 aircraft and 14 previously owned MD-90 aircraft."



With a quarterly growth of $4.2 billion in commitments adding in the newly-purchased 100 737-900ERs at a list price of $85.8 million, back-of-the-napkin math shows a 51% discount on each airframe and engine combination. What the shared revenue split between CFM and Boeing is, we'll never know, but for reference a pair of new CFM56-7B engines run at a list price $12 million.

Rendering Credit Boeing

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