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United Airlines orders 25 more Boeing 737s

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Boeing Commercial AirplanesBOEING has won an order for 25 current-generation Boeing 737 aircraft from United Airlines, beating rivals including Bombardier, to the bid.
According to Reuters the deal, which involves the 126-seat 737-700, worth over USD$2 billion.

The deal with Boeing, first reported by the Wall Street Journal, came weeks after United agreed to buy 40 Boeing 737-700s listed at USD$3.2 billion.

Bombardier said last week it was in talks with United after winning an order from Air Canada for 45 of its CSeries jets.

The CSeries, a new carbon-composite aircraft whose two models seat between 100 and 160 passengers, is due to enter service in 2016 after years of delays and budget overruns.

A spokeswoman for Bombardier declined to comment on the United deal. Another potential competitor for the order, Embraer, also declined to comment.

United has long outsourced short-haul flights to regional contractors that operate planes from Embraer and Bombardier. However, those plane makers have yet to unseat Boeing or Airbus to gain a foothold in United’s owned and operated fleet.

The latest deal would come as United aims to cut the number of 50-seat planes flown under its United Express brand by half in 2019, reducing its reliance on contractors as a shortage of regional pilots looms in the United States.

The Boeing aircraft also burn less fuel per passenger than the 50-seaters and have space for multiple cabin classes, giving United the chance to up-sell to customers.


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