AerCap has executed agreements with Delta Air Lines for the long-term lease of seven Airbus A350-900 aircraft, delivering in the third and fourth quarters of this year. All seven aircraft are powered by Rolls-Royce Trent XWB-84 engines.
“This is a significant transaction for AerCap with one of the largest and most successful airlines in the world. We are delighted to support Delta’s ambitious commitment to sustainability by leasing these seven Airbus A350 widebodies, which are proven to significantly reduce carbon emissions and external noise footprint over previous-generation aircraft,” said Aengus Kelly, CEO of AerCap. “We thank Ed and the team at Delta for the confidence and trust they have placed in AerCap, and we look forward to working with them for many years to come.”
As well as leasing these seven used A350-900s, Delta has also entered into agreements to add 29 used 737-900ERs to its fleet as the airline continues to streamline and modernize its fleet. Delta will purchase 27 of the 737-900ERs from funds managed by Castlelake, while the remaining two 737-900ERs will be financed from funds also managed by Castlelake. Both transactions are subject to closing conditions. Deliveries of the aircraft will be completed by the first quarter of 2022, and they will enter service after modifications are completed.
Delta states that the 36 additional aircraft will “improve fuel efficiency and enhance the customer experience, while supporting Delta’s fleet renewal strategy focused on simplification, scale, size and sustainability”.
“We value our relationship with AerCap, which supported this investment in Delta’s future,” said Delta CEO Ed Bastian. “As we look past the pandemic, Delta’s disciplined, innovative approach to fleet renewal positions us for growth as travel demand returns, while enhancing the customer experience and supporting our sustainability commitments.”
Delta has used the COVID-19 pandemic as an opportunity to simplify its fleet and accelerate retirements of 18 777s, as well as its older MD-88 and MD-90 narrowbody fleets. The airline also added that the pandemic provided unique business opportunities to add newer generation aircraft “at attractive prices”.
In addition to the seven A350s that are part of this announcement, Delta currently has 15 A359s in service and 20 on order. The addition of the 29 737-900ERs will bring the total to 159 in its fleet.
The agreement follows Delta’s decision in April to exercise options on 25 additional A321neo jets, which will start to deliver next year.
Meanwhile, Ed Bastian has criticised the closure of the US to European travellers, which is continuing to impact revenues.
“The international markets where US vaccinated travellers can go, particularly in southern Europe, we’ve had really strong booking interest,” said Ed Bastian, Delta chief executive, told the FT. “The problem is those markets are only one-way. The White House specifically is not willing to open up the US marketplace to European or UK travellers, which is a source of frustration.”
“We have given them all the science why it’s safe . . . but the White House is still concerned with the overall vaccination rate in the country.”