Report: Delta Considering Big Boeing 737 MAX Order

Delta is the only major US airline that does not have the Boeing MAX in its fleet. There have been rumors for a couple of years that Delta was going to place an order for a Boeing plane. According to reports, Delta and Boeing are in advanced talks about a big order.

Delta in negotiations for Boeing 737 MAX

Delta and Boeing are in talks over an order of up to 100 Boeing MAX aircraft. It could be announced as early as April if a deal is reached.

Delta is interested in the highest capacity version of the plane. If this were to happen, it would be the first new aircraft order from Boeing in about a decade, and it would be Delta's first order of the MAX.

There is a place for the MAX if we can figure out how to bring them in, according to Delta CEO Ed Bastian.

Delta has taken a different approach to aircraft buying than other airlines in the United States.

• Delta is happy to buy used aircraft, and also operate planes longer than other airlines; used planes can often be purchased for a fraction of the cost of new planes, and the airline makes the interiors nice so that customers won’t feel like they’re flying on an older plane
• When Delta buys new aircraft, the airline is typically looking for a great deal; Delta is very strategic about when it buys new aircraft

It was a huge advantage for Delta to not buy the MAX. When the plane was grounded due to two fatal crashes, it posed a great challenge for American and Southwest, since they had to reduce capacity. That is no longer the case with the MAX flying again.

Does Delta need the Boeing 737 MAX?

I can see why Delta would want to place a Boeing order. The airline is willing to fly planes that are more than 20 years old, so perhaps the need isn't as immediate as at other airlines. Delta has a narrow body fleet.

• Delta has 95 Airbus A220s on order, which more than replace the carrier’s 53 Boeing 717s; then again, Delta recently retired all of its MD-80s, leading to a significant capacity reduction
• Delta has 127 Airbus A321s in its fleet, which are an average of around three years old, and the carrier also has 155 Airbus A321neos on order; these will more than replace the carrier’s 127 Boeing 757s (arguably the airline could use some A321XLRs for long and thin routes)
• Delta has 114 A319s and A320s, which are an average of well over 20 years old, so these will need to be replaced at some point
• Delta has 77 Boeing 737-800s in its fleet, plus 159 Boeing 737-900ERs, which are an average of over 10 years old

I was surprised that Delta was looking at the MAX 10 instead of the smaller variant. Delta already has that segment of the market covered, since the A321neo is still new and the MAX 10 is a competitor. Delta wants most of its growth to be with 200 seat aircraft, rather than 150 seat aircraft.

Why hasn’t Delta ordered the 737 MAX?

Bastian expressed surprise that Delta hadn't yet reached a deal on the MAXs, so why isn't this happening? It seems to me that it comes down to price.

When it comes to buying planes, Delta and Ryanair are both looking for a deal. Similar to Delta, Ryanair has been in negotiations with Boeing over an additional order. In the fall of 2021, it was announced that negotiations between the two companies had been called off. It was described by Ryanair CEO Michael O .

“We are disappointed we couldn’t reach agreement with Boeing on a Max 10 order. However, Boeing have a more optimistic outlook on aircraft pricing than we do, and we have a disciplined track record of not paying high prices for aircraft.”

I think it has been a similar situation at Delta, and that this has caused the delay with the order. It doesn't seem like Boeing is desperate for deals, despite the fact that the aircraft manufacturer had a bad few years. One has to wonder if Delta can reach a deal.

Maybe Delta has an advantage in the negotiations.

• Boeing knows that Delta would gladly place an Airbus order, and for that matter the airline has ordered a huge number of A321neos
• Ryanair exclusively operates Boeing 737s, and is all about fleet commonality, so Boeing probably thinks Ryanair wouldn’t even consider buying Airbus aircraft

It is being reported that Boeing and Delta are close to a deal. Delta is said to be interested in ordering up to 100 MAXs, most of which would be the -10) variant. We will have to keep an eye on whether or not a deal actually happens.

Delta plans to order the highest capacity version of the jet, the 737 MAX 10. The average age of Delta's fleet is very young, with over 200 aircraft in its fleet or on order. It seems that Delta is looking to increase the amount of flying it does with higher capacity narrow body jets.

Do you think Delta will order Boeing?