Airbus and Northwest Airlines in $3.5 Billion Deal for A-318 Aircraft

Strategic Insights -

Northwest Airlines is reportedly on the verge of announcing a $3.5 billion deal with Airbus Industries for a fleet of 100-seat A-318 planes to replace its aging DC-9s. If confirmed, the deal would see Northwest acquire up to 160 new aircraft to modernize its short-haul routes, further solidifying Airbus's position in the market. Northwest has been searching for a suitable replacement for its DC-9 fleet, with interest in acquiring a new model from either Airbus or Boeing. The deal would be a significant blow to Boeing's efforts to regain market share in the short-haul sector.

Key Takeaways:

  • Northwest Airlines is in talks with Airbus Industries for a $3.5 billion deal to acquire a fleet of 100-seat A-318 planes.
  • The deal would involve the purchase of up to 160 new aircraft to replace Northwest's aging DC-9 fleet.
  • Northwest is interested in acquiring a new model from either Airbus or Boeing for its short-haul routes.
  • Airbus's A-318 is expected to compete with Boeing's 717 model in the short-haul sector.
  • Aircraft orders are typically made several years in advance, with 2000 mentioned as a possible delivery timeline.
  • Northwest's DC-9 fleet is expected to receive 10 to 15 more years of service before being replaced.
  • The deal would confirm Airbus's increasing presence in the long-haul market, outpacing Boeing in short-haul orders.

Statistics:

  • $3.5 billion - estimated value of the deal between Northwest Airlines and Airbus Industries.
  • Up to 160 - number of new aircraft that Northwest Airlines may acquire as part of the deal.
  • 100-seat - capacity of the A-318 aircraft being considered by Northwest Airlines.
  • 1994 - year in which Northwest Airlines publicly announced plans to refurbish its DC-9 fleet.
  • 2000 - possible delivery timeline for the new aircraft.

Sources:

  • Sunday Business newspaper (Britain)
  • Northwest Airlines spokesman Jon Austin
  • Sunday Business article