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Wed, Nov 19, 2008

Anderson: Delta Will Not Favor One Manufacturer Over Another

Says Merged Airline "Will Be An Opportunistic Purchaser"

One of the big questions in the Delta/Northwest merger has been answered -- whether Boeing or Airbus could expect a windfall from the recent merger. And the answer is... probably not.

Delta Air Lines maintains a fleet comprised almost exclusively of Boeing aircraft, with a few McDonnell-Douglas-era MD88s in the mix as well. In contrast, Northwest operates a mix of Boeing and Airbus products, as well as a AARP-eligible fleet of aged Douglas DC-9s.

Analysts have speculated whether the merger might mean more future business for Boeing, given Delta's status as controlling party in the merger. The Seattle Post-Intelligencer reports Delta CEO Richard Anderson settled the question Monday during a visit to Seattle.

"Delta will be an opportunistic purchaser of airplanes and that will include both Boeing and Airbus," Anderson said.

Then, he took it a step further... and said Bombardier and Embraer products could also be in the mix. For the moment, Delta's regional subsidiaries fly aircraft from those manufacturers... but they aren't operated by the mainline carrier directly. Anderson says that may change.

"Given our size, the breadth of our network and the variety of places that we fly, we will be customers for all the major suppliers," he said.

In acquiring Northwest, Delta also inherited that airline's 18 firm orders for Boeing's 787 Dreamliner, and options for 50 more. The 787 is about the same size as the Airbus A330, for which Northwest was already the largest customer.

Anderson said the Dreamliner will be welcomed at the new Delta... whenever it finally is delivered. "It's a pretty remarkable airplane... Boeing has done a nice job on the innovation, but it remains to be seen when we get delivery of the airplane at this point," he said.

Regarding critics who have said the Dreamliner is too small for long-haul routes, Anderson added,"Given the fact that we fly to 380 cities on six continents... the right-sized airplane in a market is really important in this business. Given the wide variations of markets we serve, the 787 over the long term will certainly have a role."

FMI: www.delta.com, www.boeing.com, www.airbus.com, www.bombardier.com, www.embraer.com

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