Second narrow-body order
02-22-2016, 10:10 AM
#1
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Second narrow-body order
Boeing Beats Out Bombardier, Embraer for Coveted United Orders
United Continental finalizes second deal with Boeing for new single-aisle jets
By JON OSTROWER
Feb. 22, 2016
United Continental Holdings Inc. is finalizing a second deal with Boeing Co. for new single-aisle jets that would enable the U.S. aerospace giant to block smaller rivals Bombardier Inc. and Embraer SA from gaining a coveted spot in the airline’s fleet, according to two people familiar with the negotiations.
Boeing in January won the first of two expected United single-aisle deals, agreeing to sell the airline 40 737-700s, the smallest single-aisle jet Boeing builds. The 118-seat jets are already a staple in United’s fleet.
The number of planes in the planned second order couldn’t immediately be learned. But any such deal would be a blow for Bombardier which has sought to build sales momentum for its new CSeries jets, which represent the Canadian company’s first effort to compete head-on with Boeing and Airbus Group SE in the market for jets seating well over 100 passengers.
Bombardier has struggled to gain orders for the CSeries, although last week it won a commitment for as many as 75 CSeries jetliners from Canadian flag carrier Air Canada.
United Continental finalizes second deal with Boeing for new single-aisle jets
By JON OSTROWER
Feb. 22, 2016
United Continental Holdings Inc. is finalizing a second deal with Boeing Co. for new single-aisle jets that would enable the U.S. aerospace giant to block smaller rivals Bombardier Inc. and Embraer SA from gaining a coveted spot in the airline’s fleet, according to two people familiar with the negotiations.
Boeing in January won the first of two expected United single-aisle deals, agreeing to sell the airline 40 737-700s, the smallest single-aisle jet Boeing builds. The 118-seat jets are already a staple in United’s fleet.
The number of planes in the planned second order couldn’t immediately be learned. But any such deal would be a blow for Bombardier which has sought to build sales momentum for its new CSeries jets, which represent the Canadian company’s first effort to compete head-on with Boeing and Airbus Group SE in the market for jets seating well over 100 passengers.
Bombardier has struggled to gain orders for the CSeries, although last week it won a commitment for as many as 75 CSeries jetliners from Canadian flag carrier Air Canada.
02-22-2016, 11:11 AM
#3
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PARIS, Feb 22 (Reuters) - Boeing Co has won an order for 25 current-generation Boeing 737 aircraft from United Continental Holdings, beating rivals including Canada's Bombardier for the second time in a month, two industry sources said.
The deal, which is said to involve the 126-seat 737-700 model, would be worth just over $2 billion at list prices.
Boeing and United Continental both declined to comment.
The follow-on deal with Boeing, first reported by the Wall Street Journal, comes weeks after United agreed to buy 40 Boeing 737-700 jets.
Bombardier said last week it was in new talks with United after winning an order from Air Canada for its CSeries jet. (Reporting by Tim Hepher, Jeffrey Dastin, editing by David Evans)
I was wondering if they were going to be NG or MAX, now I know.
The deal, which is said to involve the 126-seat 737-700 model, would be worth just over $2 billion at list prices.
Boeing and United Continental both declined to comment.
The follow-on deal with Boeing, first reported by the Wall Street Journal, comes weeks after United agreed to buy 40 Boeing 737-700 jets.
Bombardier said last week it was in new talks with United after winning an order from Air Canada for its CSeries jet. (Reporting by Tim Hepher, Jeffrey Dastin, editing by David Evans)
I was wondering if they were going to be NG or MAX, now I know.
02-22-2016, 01:19 PM
#7
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Posts: 770
It seems to have been an excellent move on the MEC's part to remove any discussion of NSNB from the contract extension. Doing so freed the CO to buy bigger jets from Boeing at likely bargain basement prices to be flown at mainline - win/win/win. I think the additional capacity will negate any short/medium term 70/76 seat scope choke worries for the CO. More time to see how the C series plays out vs. the E-2... and if the economy tanks in the next couple of years then it is a moot point.
Payments for these jets are likely going to be very cheap, and a comparative bargain vs. leasing. Big question in my mind is how many narrowbodies are coming off lease in the next couple of years and how many of those leases will be renewed. Then we'll have a better idea of how much growth this really represents.
Payments for these jets are likely going to be very cheap, and a comparative bargain vs. leasing. Big question in my mind is how many narrowbodies are coming off lease in the next couple of years and how many of those leases will be renewed. Then we'll have a better idea of how much growth this really represents.
02-22-2016, 01:39 PM
#8
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Joined APC: Jun 2007
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makes me laugh how we are going full circle on 737s… granted these are a bit larger than the 300 but still…
In the end glad we are getting 737s in larger numbers… good movement and quicker upgrades for all.
In the end glad we are getting 737s in larger numbers… good movement and quicker upgrades for all.
02-22-2016, 03:49 PM
#10
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Joined APC: Apr 2006
Position: 737 CA
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They can order as many E2s, CS100s, or ANY aircraft they choose, as long as we fly them. However, if they want more 76 seaters to be flown by Express, they HAVE to order a NSNB...defined specifically in the UPA. And a 737 is NOT a NSNB. IOW, this 737 order changes nothing in our scope clause.
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