Boeing Commercial Airplanes (Boeing Corp IW500/9) has settled terms with Delta Air after the carrier cancelled an order for 18 Boeing 787-9 Dreamliner jets, a contract worth $4 billion at current list prices.
Delta had inherited the purchase commitment from Northwest Airlines, the rival carrier it acquired in a $2.6-billion share-exchange in 2008. Subsequently, in 2010, Delta negotiated a deferred delivery on the planes until after 2020.
The specific terms of the Delta-Boeing settlement were not announced, but the airline noted it would take delivery of 120 new 737-900ER aircraft, through 2019.
“This business decision is consistent with Delta’s fleet strategy to prudently address our widebody aircraft needs,” according to a statement by Delta senior vice president Greg May.
While Delta also deferred delivery for four Airbus A350s earlier this year, from 2018 to 2019-2020, it still has orders for 25 of those widebody jets, as well as 25 A330neo jets.