Originally published June 4, 2009 at 12:00 AM | Page modified June 4, 2009 at 9:17 AM
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United asking rivals Boeing, Airbus to vie for big jet deal
United Airlines has asked Boeing and Airbus for bids in a winner-take-all competition to supply up to 150 jets, The Wall Street Journal reported online Wednesday night.
United Airlines has asked Boeing and Airbus for bids in a winner-take-all competition to supply up to 150 jets, The Wall Street Journal reported online Wednesday night.
The Chicago-based airline is seeking replacements for many of its 111 wide-body jets and some of its 97 narrow-bodies, an order that could be worth $10 billion or more, the Journal said.
United has a fleet of 400 jetliners and flies a mix of Boeing and Airbus planes. It has not ordered new aircraft for several years.
It is launching the competition at a time when both plane makers are paring production as airlines defer or cancel orders.
Boeing this year has a net order balance of zero, after taking 60 new orders and losing 60 to cancellations.
By dangling a huge order at such a slack time, United hopes to get bargain pricing, as well as easy terms.
The Journal reported the airline is asking for financing arranged by the manufacturer, as well as the option to revise its order later.
Boeing and Airbus declined to comment to the Journal, as they customarily do concerning customer plans.
Copyright © 2009 The Seattle Times Company
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