Delta buys up to 130 Boeing 737 Max planes
- Nathan Bomey, author of Axios Closer
A Delta Air Lines Boeing 737 MAX is seen at Los Angeles International Airport in Los Angeles, California on June 19. Daniel Slim/AFP via Getty Images
Delta is ordering up to 130 new Boeing 737 MAX planes, handing a win to the jet maker even as it faces supply chain challenges.
Why it matters: Boeing has been trying to rebuild momentum for the 737 MAX ever since two fatal crashes more than three years ago.
What's happening: Delta said Monday it agreed to buy 100 units of the Boeing 737-10 — the largest of the 182-seat 737 Max planes — with an option to acquire 30 more.
- The company said the new planes would be 20% to 30% more fuel efficient than the planes they're replacing.
- They will be "deployed in core hubs," including New York, Boston, Atlanta and Detroit, Delta said.
Yes, but: Boeing CEO Dave Calhoun told CNBC on Monday that the company is holding off on expanding production of Max jets from its current 31 per month until it resolves supply chain hiccups.
- “We’ll get into rate increases when we get into rate increases, but the supply chain isn’t ready for it yet," he said.
Flashback: The crashes in 2018 and 2019 killed 346 people and temporarily grounded the new jets while Boeing pursued a fix. The company ultimately agreed to a $2.5 billion settlement deal that included criminal charges and payouts for victims.