Delta Sees $15 Billion Engine-Repair Bonanza in Airbus Jet Deal

(Bloomberg) -- Delta Air Lines Inc.’s new order for Airbus SE jets shows that it’s sometimes the side dish, not the main entree, that helps land a blockbuster deal.

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.

To contact the reporter on this story: Michael Sasso in Atlanta at msasso9@bloomberg.net.

To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Tony Robinson

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