These additions to the fleet, as well as accelerated deliveries from Airbus, will bring the total number of A330neo aircraft in Delta’s fleet to 42 by early 2021.
Hard to avoid the conclusion that Delta are happy with both the performance and economics on routes for which the 339 is a good match. Perhaps the 339 is more competitive with the 787 than some on a.net have claimed.
A few comments up thread suggest Delta decision to take the additional frames was mainly about price. No doubt ALC offered keen pricing. Not sure that tells us anything about competitiveness of the 339: we have seen plenty of cases where Boeing had clearly sharpened their pencil to clinch a 787 sale.
Boeing makes excellent profit off the 787. Winning strategic orders is different.
This is Udvar-Hazy accepting low returns. That implies Mr Udvar-Hazy won't order more ALC and GECAS are 'at risk buyers.' The fact a speculative buy was leased at a discount means Mr. Udvar-Hazy misread demand. ALC rents hotel suites at major airshows a month before the actual airshow. Airlines show up early to secure financing. Often, Udvar-Hazy knows of high demand before Airbus or Boeing and was able to realize they could discount less (back when ILFC was the only big Leasing company).
This is analogous to Aircastle and their Embraer E2 order. In that case the leasing company and airframer are competing
for the same orders.
We are currently looking at a slowing of the A330 line. The fact ALC couldn't do better is not a good forward looks indicator.
If ALC is the lessor, you need not worry, you ve got king SUH running the show.
DL is a very low risk customer plus interest rates are low, so this is easy money for SUH.
Plus they most certainly got very deep discounts from Airbus anyway.
Even if they only make 3% margin per annum, you can count on inflation to keep residual value high.
I wouldn't be surprised if DL does more of these kind of A339 deals.
And yes about the A380's potential that's me whining about it all the time.
The A330ceo was coming off the line at more than 120 units per year, and there is no reason to doubt that it can do it again.
Lower production cost and early availability will be crucial in the upcoming fierce battle against the B787. This battle is just starting, so increasing production and decreasing unit cost is crucial, even if at the expense of the backlog.
There will always be a taker for a cheap A339.