By Rebecca Rayko
AWN Editor

Last week Delta Air Lines placed the largest regional jet order the industry has seen, all because of a challenge the airline made two years ago to Bombardier Aerospace.

Delta Connections, the regional airline subsidiary of Delta, last week placed an order which, if all options are exercised, will be worth $10 billion.

Crucial to closing the deal was the development of a new 40-44 seat version of the CRJ-200, what Delta calls a "microjet", to be operated by Delta Connection carriers Comair and Atlantic Southeast Airlines.

The 40-44 seat version is essentially a CRJ-200 with up to 10 seats removed. Technically speaking, the seat removal is a considered a configuration change only, so no extra certification measures will be necessary, said Bombardier Aerospace president Mike Graff in a conference call last week.

How the extra space will be used is up to Delta, Graff said, but he speculates it will be used for storage or just to allow passengers more room on the aircraft. Delta is also able to add extra seats at a later time as needed.

The order win is quite a coup for Bombardier, whose rivals already have smaller regional jets on the market. Bombardier chief executive Robert Brown was asked how taking seats out of the CRJ-200 remained economical for Bombardier to sell, and for airlines to operate.

"It was a team effort," Brown said, meaning a combination of customer "contributions" and some internal efficiency measures, which allowed Bombardier some flexibility when it came to pricing the order.

"We have made accommodations on pricing for each model," he said of the Delta Connection order. "Our aircraft offer a great deal of flexibility and commonality - a whole series of things that appeal to Delta."

But don't expect Bombardier to launch an extensive sales campaign for the new 40-seat CRJ.

"We've been very selective in discussing 40-seaters with our customers," Brown said. "Our focus is on larger customers who have a broad range of our products."

Delta certainly falls into that category. Its feeders Comair and ASA have 125 CRJs between them already, and have ambitious growth plans hinging on expanding service through a steady flow of CRJ fleet additions.

"Delta's strategy is to build the regional jet program in a big way," said Delta Connection CEO David Siebenburgen. "Now we get to compete with a family of aircraft that no one in the world has."

The firm order, valued at $2 billion, spans the CRJ family from the 40-seater to the 70-seater ( see chart).

Delta also placed 406 options, which will be for a mix of CRJ-200s and CRJ-700s with delivery dates stretching out to 2010.

Ever the optimist, Bombardier's Brown is confident all of the options will be exercised.

"Historically Comair, the North American launch customer for the CRJ, has exercised its options over time, and I feel that will happen," he said.

Brown noted that Delta's Siebenburgen is clear on how he sees the market and Delta's need for aircraft.