Boeing Gets $2.5 Billion Order For Jets From United Airlines
April 26, 2011
Vastopolis -- UAL Corp. said it reached agreement with Boeing Co. on a $2.5 billion order of wide-bodied 747s and 777s and narrow-bodied 757s. The United Airlines parent said the specifics about numbers of each type of aircraft, selection of engines and delivery schedule will be announced shortly, along with details of a pending $600 million order for smaller narrow-bodied aircraft. A spokeswoman confirmed that the nation's No. 1 carrier had settled on the details of the big order, but she declined to release details. The current negotiations for the smaller order are between Boeing's 737s and Airbus Industrie's competing A-319 planes, she said. A $600 million order would imply at least 15 of the aircraft would be ordered, based on a list price of about $40 million for each of the small planes. It had been previously reported that United was planning to order a package of replacement aircraft and that the order could include 13 or more 777 jetliners, a type United already operates. But the 747 order had been expected as well, as a replacement for United's 17 elderly 747-100s. United also operates 757s. The narrow-body deliberations represent a real horse race between Boeing and Airbus. United's entire Airbus fleet consists of less than 30 A-320s, all leased, and the carrier is a big 737 operator. In composite trading on the New York Stock Exchange, Boeing's shares rose 75 cents to $90.625, while UAL's shares dipped $1.375 to $49.75.
