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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Boeing-Delta Deal Ok In Europe?

From Staff And Wire Reports

Boeing Co.’s big new supply contract with Delta Air Lines Inc. respects the terms of a July agreement with Europe’s antitrust regulators, a company spokesman said Friday.

The July agreement ended threats by the EU to block Boeing’s merger with McDonnell Douglas Corp.

“We believe any scrutiny will demonstrate that in fact Boeing is living up to the agreement,” T. Craig Martin, director of European communications for Boeing’s commercial airplane group, told Dow Jones News Service.

Tuesday, Delta announced definitive aircraft-purchase agreements with Boeing, including 106 firm aircraft orders for delivery through 2006. The EU Commission, the antitrust watchdog, promptly said it would probe the contract to make sure it complies with the July agreement.

Martin said the agreement with Delta didn’t tie the U.S. airline to buy only planes from Boeing.

“Exclusivity elements are unenforceable,” he said. “We have a very good customer, they want to buy Boeing airplanes for 20 years. But they could go out and scrap anything that is not a firm order.”