Boeing Closer to Deal With Delta

Boeing Co is moving closer to a landmark order by Delta Air Lines for 100 of its 737 Max 10 jets. This model is being fought in separate talks to be approved before the year-end rule changes.

If the deal is confirmed, it would be the first Delta order for Boeing’s most-sold single-aisle aircraft family and the first major Boeing order in a decade.

This comes as Delta, the US’s only major carrier, has restructured its fleet to prepare for a quick recovery from the pandemic.

Boeing and Delta have had a strained relationship over the years. They are currently working on details for an order that could include 100 aircraft. Many or all of these could include the largest variant, the 737 MAX 10. Two people confirmed this.

One person said that if a deal is reached, it could be announced as soon as next month.

Boeing and Delta refused to comment.

According to industry sources, negotiations are often very close and no decision has been made. In the past, there has been speculation that Delta might place a MAX order. However, no deal was ever made.

The MAX 10 is competing with Airbus’ most popular model, the A321neo. Both planes target the rapidly-growing market of just over 200 seats.

Air Lease, the leasing company, has described the A321neo as one of the “hottest planes on the market”. However, Boeing has won a number of contracts in the last year.

Airbus declined to comment.

Airline Weekly reported that Delta Chief Executive Ed Bastian stated in September that there was room for the MAX at Delta, if the carrier could find a way to bring them in. 

When asked about the MAX in London, he said that Delta was always looking into all types of airplanes.

CERTIFICATION TALKS

The deal will cement Boeing’s position as a leader in industrial certification and headaches. 

The planemaker faces a separate, but more difficult battle to get certification for the MAX 10, before a new safety standard regarding cockpit alerts goes into effect at year’s end.

After the 2018 and 2019 fatal crashes involving a smaller MAX-model aircraft, the Federal Aviation Administration introduced a deadline for making changes.

Boeing met with lawmakers to discuss the possibility of asking for more time. However, Boeing has not officially sought an extension to address a flight-deck issue.

When asked about this possibility, an FAA spokesperson stated that “safety dictates when certification projects are scheduled”.

If the FAA fails to certify the MAX by the end of the year, only Congress can extend the deadline.

Boeing raised concerns with lawmakers about the possible impact on production and jobs if the 737 MAX 10 was not approved.

Boeing sent an emailed statement saying that it continues to work transparently to the FAA to provide all the information they require and is committed to fulfilling their expectations in order to obtain 737-10 certification.

Although it did not directly comment on talks with lawmakers, the company said that the jet would support “tens to thousands of jobs at Boeing” and throughout its supply chain, including in Washington.

This issue will likely become a topic of contention during confirmation hearings for the next FAA administrator. The current FAA Administrator Steve Dickson will step down on March 31.

The Seattle Times published this month an earlier Boeing submission to FAA, citing an estimated cost of compliance for the MAX of more than $10 billion.

from lawyers.buzz https://lawyers.buzz/182-2/182/
via IFTTT