Delta Air Lines Inc. (NYSE:DAL) likely in talks with Airbus and Boeing (NYSE:BA) for Jet Purchase

Northern, WI 1/25/2013 (avauncer) - Delta Air Lines Inc. (NYSE:DAL) is in talks with to Airbus SAS (EAD) and Boeing Co. (NYSE:BA) for purchasing over $1 billion worth of new jets as the aircraft makers discard their present single-aisle models. The prices would be much lower than the current retail prices as Delta Air Lines Inc. (NYSE:DAL) is looking at the present models of Airbus A320 as well as Boeing 737, and not the latest models. The airlines is intending to purchase 24 to 30 planes.

A deal that is this big will be having a book value worth minimum of  $1 billion, according to the rates estimated by consultant Avitas. The latest models of A320s or 737s would have a retail price of around $2.8 billion, as per the figures released by Airbus as well as Boeing (NYSE:BA), although airlines do not pay that much. Purchasing the current models from plane makers meets CEO Richard Anderson’s tactic of locating cheaper options to rejuvenate Delta Air Lines Inc. (NYSE:DAL)’s fleet and at the same time disposing off few of its older jets.

Delta (NYSE:DAL) is going for a pact under which it would buy new planes and at the same time letting Boeing (NYSE:BA)  or Airbus replace few of its 50 seat local jets. This is just like its pact with Bombardier Inc. (TSE:BBD.B) under which the airline ordered around 70 Bombardier jets having 76 seats which were converted into 60 50 seaters.

Anthony Black, a spokesman for Delta (NYSE:DAL), refused to say anything about the airline’s plans for buying jets. Marc Birtel, a spokesman for Boeing (NYSE:BA), refused to say anything about their discussions with customers. Even Mary Anne Greczyn, an American spokeswoman for Airbus refused to say anything about the deal.

Delta Air Lines Inc. (NYSE:DAL)  went up 1.09% to $13.93 towards the close on NYSE, while Boeing (NYSE:BA) went up 1.39% to close at $75.32. Parent company of Airbus, European Aeronautic, Defence & Space Co. remained unchanged at 34.69 euros on Paris bourse.

New single-aisle jets will not increase Delta’s (NYSE:DAL) size, and deliveries would commence in 3 to 5 years as the plane makers start disposing off older models and move over to newer models.

The share price of Delta (NYSE:DAL) went up by 1.09% to close at $13.93

The share price of Boeing (NYSE:BA) increased to 1.39% and closed at $75.32.