Military

Delta Buys Used 777 for $7.7 Million, Sinks Boeing Shares

Paul Ausick

Published: December 18, 2015 9:25 am

Last Updated: January 13, 2020 3:56 pm

Delta Air Lines Co. (NYSE: DAL) CEO Richard Anderson admitted on Thursday that he was wrong about being able to buy a used 777 passenger plane for $10 million. According to a report at Bloomberg News, Delta tweeted Anderson’s comments at an investors’ presentation:

I was wrong when I said used 777s were on market for $10M. It was actually $7.7M. We just signed a letter of intent to buy one.

Boeing Co. (NYSE: BA), makers of the 777, declined to comment on the Bloomberg report.

Boeing shares, which had bounced higher based on announced commitments and sales worth around $11 billion, fell from nearly $150 to about $146 before closing the day at $145.56, down 1.7%.

The aircraft maker’s problem is that a large number of different models of the 777 are coming off lease soon and that the market for used versions may kill the company’s hopes of adding orders for the new 777s. A new 777-200ER carries a list price of $277.3 million, and the larger 777-300ER carries a list price tag of $339.6 million. Even adding in cabin reconfiguration costs of roughly $20 million, a 777-200ER that is around 10 years old and sells for $7.7 million is a bargain anyway you look at it.

24/7 Wall St.
The Best (and Worst) Investments of 2015