EXCLUSIVE: Delta CEO on choosing between Boeing, Airbus: Price is important but 'it's not the only factor'

Delta Airlines CEO Ed Bastian speaks to the PSBJ in Seattle
Delta Airlines CEO Ed Bastian said Boeing is in the running for a multibillion-dollar single-aisle jet order.
Anthony Bolante | PSBJ
Andrew McIntosh
By Andrew McIntosh – Reporter, Puget Sound Business Journal
Updated

See Correction/Clarification at the end of this article.

Ed Bastian said this week that price is only one factor the airline considers when deciding which jet maker will win a multibillion-dollar order.

Delta Air Lines CEO Ed Bastian is currently weighing his options as he gears up to order 75 or more single-aisle jets in a multi billion dollar deal.

Aerospace analysts have suggested Boeing (NYSE: BA) may lose out on the blockbuster order.

But Bastian — who discussed the order in a wide-ranging exclusive interview with the Puget Sound Business Journal while in Seattle this week — said Boeing is very much still in the running.

Bastian said Delta's (NYSE: DAL) choice for its next generation single aisle jets — the Boeing 737 Max versus Airbus A320 neo families — is a complex, critical decision, involving many people. It will be made only after a careful study of many factors and it won't be a deal cloaked in secrecy, he said.

"People sometimes think that these things are done in some back room parlor and deals get cut. Maybe some companies do it, but we don't do it that way at all," Bastian said. "We try to make sure everybody's included and everybody has their opportunity to give their input. It's a transparent process."

Asked what factors will sway the airline's decision, which could help Boeing and its suppliers keep thousands employed in Renton and elsewhere in the region, Bastian listed several.

"Price is a very important factor. It's not the only (one) by any means," he said, noting that product quality was another consideration.

RELATED: Read Bastian's remarks about Delta's relationship with Boeing and Commercial Airplanes CEO Kevin McAllister in this exclusive report.

Airbus has suffered from early difficulties and mechanical issues with the Pratt and Whitney turbofan engine on its neo (new engine option) jets. The snafus have delayed deliveries to frustrated airline customers, and left them scrambling. But Bastian says he's not worried about that.

"From what we understand, the manufacturer is working through (the issues) with Pratt and Whitney," he said. "So, I think that by the time we would be in a position to take deliveries, which I think wouldn't be until 2020 given the advance lead time, I think those issues are going to be resolved."

Correction/Clarification
The story has been updated to correct an earlier version that incorrectly said Bastian is also Delta's chairman.

Related Content