Photographer: Krisztian Bocsi/Bloomberg
Delta Sees a $15 Billion Engine-Repair Bonanza in Airbus Jet DealBy
In announcing a purchase of 100 planes, Delta also said it would become a major maintenance provider for the Pratt & Whitney engines powering the aircraft. That opens up a new revenue stream for the airline’s TechOps unit, which serves other airlines in addition to Delta.
Pratt, a unit of United Technologies Corp., has committed to use TechOps for more than 5,000 engine repairs and overhauls. That helps create a $15 billion sales opportunity in the long term, Delta Chief Executive Officer Ed Bastian said Thursday.
Whether the projection pans out remains to be seen. By comparison, Delta’s order of A321neo planes carries a list value of $12.7 billion, before the discounts that are customary for aircraft purchases.