There were two large aircraft orders last week, one for 50 aircraft at Delta and another for 10 aircraft at Kuwait Airlines. Their economics, implications, and contribution to the bottom line of the aircraft OEM, however, appear to be quite different. Airbus won a hard fought order with Delta, but at a deep discount likely to result in low margins. Boeing won a smaller battle, but with a lower discount, and will likely earn a substantially higher margin per aircraft from its order.

The Delta Order

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