Why Delta Air Lines Avoided Ordering The Boeing 737 MAX (Until Now)
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- Опубликовано: 5 май 2024
- A few weeks ago we discussed why Delta Air Lines operates Airbus jets not flown by its large US rivals. Commonality with the existing fleet was one major factor, as was the simple fact that certain types were best suited for the airline’s operations. But digging even deeper, we can see that decisions made over a decade ago were critical to putting the airline on a solid path to success, while also avoiding some catastrophes perhaps only visible with hindsight.
Choosing to wait several years longer than its rivals to order the Boeing 737 MAX may have been particularly benecficial…
It’s these historical decisions and a strategy of prudence that we’ll look at for today’s video.
Article: simpleflying.com/the-prudent-...
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Oh no! As many of you have already noticed, we misspoke at 01:34. It should be A330-300, and not A350-300. (Although one has to wonder what an A350-300 would look like! Something like a widebody A318? 😅) Thanks to everyone who commented to let us know about the error!
Lol I was like A350-300s?? 😂😂😂
It's no wonder Delta is one of the most profitable airlines in the world
They strategically dodged a lot of bullets over the past decade and a half, and they deserve the credit. This does make them reliable as an airline.
I definitely think they learned a lesson with the TriStar. A lot of airlines jumped at the flashy S-duct and efficient engines (including delta) but were bitten in the ass when the project hit repeated delays. They've been much more careful in their acquisitions since.
@user-zg8ey4zn4p that make sense
Best CEO ever, I’ve actually seen him flying on the airline’s 30 year old 757’s.
then 757 are built a lot better then some of the new planes
There's also high likelihood that they got a steep discount on the max-10s with all the issues Boeing has and to try and win back more of delta's orders.
Plus CFM LEAP MRO deals. Delta tends to do maintenance inhouse.
I think you are right. Delta statement 2:17 - 2:24 regarding the acquisition of Boeing 737-Max10 says '... and the agreement reflects our prudent approach to deploying our capital." It seems to indicate that the prices were much to Delta's liking (i.e., heavily discounted by Boeing).
Let's be honest, Airbus inability to delivered A321neo before 2030 is probably the main reason.
"Delta is in no rush to buy planes. Let other airlines test them"
This thinking is really smart. Whenever a new product hits the market, ALWAYS expect that there will be bugs in them. This is why it's better to buy the next generation or even the 3rd generation of a product because at that point the manufacturer has already ironed out the kinks.
This applies not just with planes but with vehicles, smart phones/gadgets and even appliances. Letting other consumers buy it first and review the feedback that they give on it is good information to have when you are considering in buying the product.
CEO is a smart guy
Delta is doing what works Best for them 👍🏿👍🏿👍🏿
Three incidents with Boeing this week and I hope Delta pulls out of the deal with Boeing. They ordered 85 max 10 planes. The phrase going around now. "If it's Boeing, I won't be going".
Delta was being smart. Also, Delta had some grudges with Boeing over Bomberdier C series ( Now A220)
its not some Grudges, it is very Large Grudges
honestly Delta has dodged a huge liability bullet by not getting the MAX early.
Their fleet strategy has been very interesting. Curious to see what happens with their extensive 757 and 767-300ER fleet once those get retired. I can see the A321neo/LR/XLR being used to replace the 757s but I am just not sure if the A330-800neo is the right choice to replace those -300ERs. Will be a very exciting few years for them coming up.
Would be super cool seeing the A338 getting some orders though
The problem is 338 is not that cost effective per seat, and not that cheap compared to 339. Or in other words, the extra seats on 339 cost Delta little.
We can see the same phenomenon for 787, many opted for 789 instead, though 788 is quite a bit more efficient than 338.
So they gonna use some A321neo and all of the MAX10 to replace all of their B757's operations. Unlike United, Delta doesn't use B757 for long European flights. It's mainly used for trunk domestic routes. So it's easy to do.
Chances are, both B767-300ER and B767-400ER would be replaced and upgraded to A330-900neo. At the end of the decade, I also see them retiring the A330-200 and A330-300 with A330-900neo.
While it might be an upgrade in capacity. I think they would add more discounted economy class ticket just to fill the cabin and to crush competition on the routes they are flying in. A330-900neo efficient and cheap enough that they could do that.
Easy it has the range and the capacity of the 767.
It is much more fuel efficient then the older A330-200/-300
Since it got a wing which was specifically designed for the A330 this time.
Unlike the older A330-200/-300 wing which was designed to more or less fit on the A330 and the A340.
They operate the A350, the A320family and the older A330. Which makes pilot training much easier and therefore cheaper.
And Airbus specifically redesigned the A330 to also fly short and medium Haul high demand routes and Airbus is continuing to improve the A330 in that aspect.
So High demand JFK to LAX would be a also a route the A330neo could perfectly fly, instead of Seattle London for example.
So the A330-800 is a good option. Not too many seats as to be too large for domestic use but still enough range to fly long haul. So it makes sense. 😊
@@ax.f-1256On top of that, Airbus recently announced some modifications to the A330NEO coming in 2025. Only time will tell how the improvements will close the gap with 787 in the long-range category, since its already competitive in the short to medium range category.
They got a killer deal buying it when no one else had ordered significant MAXs after the grounding. You can look the opposite way with the A321neo, they bought it in advance and got it when it was just introduced. They/you can say it was smart, but it’s just trying to find deals on planes. They’re always looking for a deal, although they may not always find one, they are looking for large savings. Same thing happened on the a220 and a330neo orders for sure.
This strategy is actually so smart
Delta is smart alright👍
The reason I love delta so much is, they’re the only US based carrier that bucked on Boeing and committed to Airbus long haul planes. The only US carrier operating the A330 NEO and A350 900 and soon to be A350-1000! Not to mention the A220. Their Airbus commitment sets them apart from any American carrier in my opinion. And their business model is always bring copied because they are profitable.
Quite the opposite, Delta's business model is hard to copy.
To start with it owns TechOps and refinery inhouse. So planes with poorer reliability and / or efficiency are more tolerable. That gives Delta extra leeway in fleet planning.
Also being a big blue chip carrier means it has more bargaining power over both A&B and creditability in financing. In fact, Virgin America was the launch customer of LEAP-powered A321NEO, but it didn't get a deal particularly impressive according to Alaska.
I really think Delta might be seriously contemplating canceling its entire 737-10 order and placing a new order for 100 A321neo planes. Delta already operates the A321neo, so there's no issues regarding flight crew, cabin crew, ground service crew and hangar maintenance crew operations.
At 01:34 The voice over states A350- 300, then shows A330-300
Just so you know .
Love your channel, love your vids, love the voice over man 👌
Was wondering if anyone caught that too. I had to backup and relisten. My ears heard a350-300 but my eyes saw 330-300. LOL
Prudent is a word I don't think I've heard before but I'm already getting jamais vu
Not like they’ll be getting the Max10 anywhere near the original expected entry into service date so waiting hasn’t made one bit of difference
Brilliant ✈️
Delta has talented management! No wonder why they’re so successful.
Very smart Delta. Thank you. That's why I fly you and Jet Blue.
Waiting to buy a new product like a jet or a car is actually really fucking smart. I use that tactic when I’m looking for a new car to buy and it’s helped me avoid total duds like when the new generation ford explorer came out with all those transmission issues.
What happened to the LARGE A330neo order after the A350-1000?
Keeping the MD-88's and MD-90's longer was genius, as half were paid for and fuel flow didn't come close to making up the difference in new higher rents. Plus they were cheaper to maintain than 737-800 and A-320's. That propelled them to historic profits and the most stable airline in the US. But now Bastian - yes I hate you too Ed - has the hots for anything and everything green. He would love electric planes if they worked and SAF for everything.
Delta is being VERY smart in their decisions to update and upgrade their fleet. The major players in aviation manufacturing is not the same as it was in the heyday of the 1980s. Lockheed bowed out of the commercial aircraft manufacturing (wisely, I might add) due to their rather expensive products. McDonnell-Douglas, known for cranking out robust airframes, is now Boeing. Bombardier gave up on building commercial regional jets, and sold that to Airbus. Embraer is a non-entity in this stage because of their struggles with the E2 series of their regional jets. Now, we are left with Boeing and Airbus. What I would like to see Delta consider is possibly adding the E2 E-195 to complement the A220 for their smaller markets in which the regional carriers are battling via contract stipulations (the regional carriers are not allowed to fly aircraft that are heavier than a certain gross weight or a larger number of seats that they agreed upon). The carrier they can learn from with the Embraers: JetBlue.
the ONLY reason Embraer has "struggles with the E2 series" is because of the US regional scope clauses that prevent them from flying aircraft above a maximum takeoff weight of 86,000 pounds.
The weight restriction is archaic and should be raised to give better economic and environmental aircraft a chance.
@@soccerguy2433The weight restriction should be lowered. The reason it’s there in the first place, along with limits to the number of airframes, is to prevent airlines from outsourcing all of their domestic flying to regional airlines.
To your last point, a small part of me thinks they are holding out for an A220-500.
Well if they do hold out to see if they'll go ahead with the 220_500 at least they would have the same capacity as the MD 80 and 737
@@ronparrish6666 It doesn't have to. Its major selling point would be efficiency, though it should be capable enough for the most. If not just fly a 223.
I'm sure that, in hindsight, Delta has realized that the 787 would have been a more prudent option than the A330neo.
Also, Delta is enjoying priority repairs of the A220 Pratt and Whitney engines, which unfortunately is hurting smaller airlines.
Why do you say that The 787 would’ve been a more prudent than the 330 Neo please ?
@@Rasscasse Overall, the GE engine has proven to be more durable and requires less frequent maintenance cycles, and the aircraft has been proven to have better costs per seat mile overall no matter how little people say the differences are.
@Rasscasse ignore him. He's clueless!
@@wadehiggins1114 I state facts. Refute with facts or stay in your clueless fanboy lane.
@@sainnt what kind of facts you state?! boeing fangirl!
The reason they got 220 was at the time nobody else wants to buy them so they got a good discount.
Delta is more smarter than any other American carrier.
Who would freely seriously want the Max anyway?
Clearly Delta does...
What about Boom Overture????
What are they like to fly with as a customer? Regardless of what plane you're on.
I had some pleasant experiences, so I can recommend them.
The Max 10 is not yet certified...strange decision compared with the prudent approche...
*1:33** You meant a330-300.*
Delta has been silently thinking a strategy about new aircraft models which is a great way of competing in this industry. I believe it will switch to a all Airbus in the near future even though they have bought new 737.
Delta is smart
I guess letting the aircraft get tested by customers does work in the end, since they wanted to ensure the manufacturer to fix the kinks out of the planes and let the customers deal with the issues, until they jump in. Smart move.
737 vs A320?
A320 FTW
Both, the 737NG (not the max) and A320ceo/neo are good.
@trazkey Exactly! Definitely not the max!
Both have their benefits and downsides. But, if I have to choose, I have a slight preference towards the A320 family.
Nobody is mentioning that they are somehow able to get away with charging a LOT MORE for their tickets than other airlines. I love their service especially overseas but it is expensive.
Many airlines who ordered the MAX must regret it...
Delta airlines ordered the 737 max 10 to see how many aircraft airbus can deliver to them, before the 737 max 10 even gets certified and delivered to them. Delta lowkey clowning Boeing on this one.
Clowning the clowns 😂
If they can get the 10s in the air that would be nice, I really love flying on their -900ERs. But... This is Boeing we are talking about here lol
Correction its A330 300 not A350 300
Because somebody knew what they are, were, doing. 737 is a flying schoolbus. Delta has comfortable flights.
Delta needs to grab up more used 737-900 while they wait for the -10, and retire the a320-200
Richard Anderson was a wise CEO.
Boeing refused to install a second angle sensor on the 737 max until the European authorities demanded it. You don't buy a plane for that company, would you ?
Patience is key I guess
A350-300???
That's my favorite model. Flies smooth, quiet albeit outdated technology.
Love the 2-6-2 layout
Outdated? Newest widebody on the market@@averagejoe9249
Airbus is really bad at marketing the a320 series. They had so much time the whole time the max was grounded to get more orders.
Eh. They have more than enough orders.
They don't really want too many orders, because they already have too many orders
Time to get a synonym dictionary.😂
I want a380 back please 380 delta please
Delta is the prime (American) capitalist.
Setting pride, patriotism and flashiness aside and solely focussing on economics. Thus having many Airbus planes and prooven models
Delta may want to "prudently" consider acquiring Frontier Airlines so that it can instantly add over a hundred A320s and A321s while cancelling the 737 MAX order.
They should 😂
None of the big 3 will ever get a merger approved past the government. The government is even blocking small things like the AA and Alaska co-share agreements. And the smaller JetBlue and Spirit merger.
@@wadehiggins1114 no they shouldn't
@@nickolliver3021 why is that?
@@wadehiggins1114 ask boeing troll
Delta dont want to become BETA tester 😅 Also. After a series of high profile scandal with 737 Max, this gives Delta a stronger bargaining position for a better deal. 😊
Clever guys at Delta. Let someone else do the dirty work shaking them down for problems.
Really hoping they cancel their MAX orders.
Not too much latte bet all size delta size not too much get little bit bigger please
"After kinks worked out"...the problem with that reasoning is that Boeing still makes the 737 models. It's a permanent kink in the idea of buying Boeing products.
No it’s smart. Diversity in a fleet means you’re not putting all your eggs in one basket.
Because they hot better deal from airbus
Delta’s strategy is “fly it til the wings fall off”
Avoiding the leading edge of the mistake curve is a prudent approach to running a successful business. Boeing doesn't get that or many other issues.
Delta are the only out of the big 3 that got it right
Avoid flying on these max aircraft!!
Airbus gives kicks back to the board …
Delta Boeing Traidor!
I was very interested in this topic, but I can no longer stand this background noise that simple flying calls music. From now on I will systematically downgrade all videos with this disgusting background noise.
I guess Delta doesn't care about the SAFETY of its Passengers?!
STAY OFF THE BOEING MAX!!!!!
From now on, only Delta, baby.
Maybe Delta is starting to realize that the MAX is no longer popular with the flying public. The entire MAX line is a disaster at this point and Boeing cannot be trusted at all at this point.
Also with the a350, Delta held off until this year to order the -1000 variant which will be built under NPS “new production standards” specs! 🫡👌🏼