According to an announcement released today, Delta Air Lines (NYSE:DAL) has finalized an agreement with Bombardier Aerospace (TSE: BBD.B) to purchase 40 CRJ900 aircraft. The new 76-seat planes are expected to replace 60 existing, 50-seat airplanes in Delta's fleet. Based on Bombardier's existing pricing, the firm order of 40 planes is valued at $1.85 billion.
In addition to the 40 planes already agreed upon, Delta has an option to purchase 30 more aircraft. According to the Bombardier press release, if the option for the additional 30 planes is exercised, the entire order would be valued at $3.29 billion.
Mike Arcamone, President of Bombardier, said:
Building on a relationship that is 20 years strong, we are delighted that Delta – one of the world's largest, most prestigious global airlines – continues to select Bombardier CRJ regional jets to replenish its fleet.
Regarding the new order, Delta President Ed Bastian, added:
The economics and customer features of the Bombardier CRJ900 made it the right aircraft to add to our Delta Connection fleet.
Tim Brugger has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.