Delta Airlines (DAL) and Airbus have agreed to terms for a 100 firm and 100 option order for Airbus 321neo aircraft with deliveries beginning in 2020. The new jets will be powered by Pratt & Whitney turbofan engines.

Delta, the second biggest United States airline by pax numbers, expects to take delivery of its first A321neo in the first quarter of 2020 with new aircraft arriving through 2023. The deal is estimated to be worth around $12.7 billion in list prices and is regarded as a major win for French company Airbus in the competition against its United States rival Boeing.

Rumor has it that Delta was in talks with Boeing for 100 of its 737 MAX 10, CNN reports. Boeing is currently locked in a legal battle against its Canadian rival Bombardier. The US plane maker launched its dispute earlier in 2017, alleging that the Canadian government is illegally subsidizing Bombardier’s C Series commercial airliner program and convincing the United States government to oblige 300% trade duties on the C Series planes... bought by Delta.

“This is the right transaction at the right time for our customers, our employees and our shareholders,” said Delta CEO Ed Bastian. “Delta, Airbus and Pratt & Whitney share the same commitment to safety, efficiency, innovation and continuously improving the customer experience. This order for the state-of-the-art A321neo with Pratt’s Pure Power next-generation jet engines reflects our long-term commitment to these values for Delta people and all our constituents”.

“The A321neo will equip Delta employees with a customer-preferred, versatile narrowbody aircraft befitting their position as a global airline leader — and we are excited to continue to partner with them as they deliver industry-leading operational performance, customer satisfaction and financial results,” said John Leahy, Chief Operating Officer — Customers, Airbus Commercial Aircraft. “This purchase furthers our commitment to U.S. aviation — a commitment that has never been stronger.  Today, there is more U.S. content in Airbus aircraft than from any other country, with more than 40 percent of our aircraft-related procurement coming from the United States.  In addition, our workforce at the U.S. Manufacturing Facility in Mobile, Alabama is proud that they will be delivering many of these A321neos to Delta in the coming years”.

A long-term commitment with Pratt & Whitney for Delta TechOps to be a major maintenance, repair and overhaul provider for the Pure Power PW1100G and PW1500G engines, powering Delta’s A321neo and C Series aircraft.

“The addition of geared-turbofan technical knowledge at Delta TechOps will not only be applied to the 200 engines that will power Delta’s A321neo fleet, but will also uniquely position TechOps as an MRO leader in this space as future engine types are developed,” said Gil West, Delta COO.

“We couldn’t be more proud of our long standing relationship with Delta, which dates back to the 1930s,” said Pratt & Whitney President Robert Leduc. “Fast forward nearly 90 years, and the GTF engine has revolutionized aviation technology, and will provide Delta with proven performance and environmental benefits. We are honored to power and support Delta’s new fleet of A321neo aircraft well into the future.”