Aaron Karp - ATW
Delta Air Lines has signed a letter of intent (LOI) to buy a used Boeing 777 for $7.7 million, according to CEO Richard Anderson.
Anderson raised some eyebrows in October when he said there was a “huge bubble” in used widebody aircraft, pricing a 10-year-old 777-200 at $10 million. The market would be “ripe” for Delta to buy used 777s, he said then. Boeing president and CEO Dennis Muilenburg was among those who pushed back against Anderson, saying the Delta CEO was valuing used 777’s much too low.
Anderson said Dec. 17 that he was “wrong when I said used 777s were on the market for $10 million. It was actually $7.7 million. We just signed a letter of intent to buy one.”
Anderson’s comments came during Delta’s investor day and, for added emphasis, were posted on Twitter by Delta. Just as happened when Anderson made the original remark about used 777 values, Boeing’s stock price immediately dropped.
As a point of comparison, Boeing’s list price for a new 777-200ER is $277.3 million, meaning Delta is buying a used 777 at a price 97.2% lower than the value of a new 777.
Delta did not give details on the 777 for which it signed the LOI, such as who the seller is and which airline previously operated the aircraft.
Delta to buy used Boeing 777 for $7.7 million | Airframes content from ATWOnline
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