What is the reason for United splits order between Boeing and Airbus a350?
By Andrea Rothman and Mary Schlangenstein (Bloomberg) — United Airlines (UAUA) split an order for 50 long-range widebody jets valued at $10 billion between Boeing Co. and Airbus SAS as the U.S. carrier made its first aircraft purchase in 11 years. UAL Corp.’s United will buy 25 A350s and 25 Boeing 787 Dreamliners, with deliveries scheduled from 2016 to 2019. The Chicago-based airline also holds future purchase rights for 50 of each jet. A shrinking U.S. airline industry gave United, the third-largest U.S. carrier, more power in negotiating discounts from the planemakers. The new aircraft will replace Boeing 767s and 747s with more fuel-efficient models that have greater range and fewer seats. “The order can be a major positive for United Airlines going forward for a variety of reasons,” Helane Becker, an analyst at Jesup & Lamont Securities in New York, said in a note today. “The company gains flexibility at a minimal cost.” Becker raised her rating on UAL to “buy” from “hold.” Sharing
United Airlines (UAUA) split an order for 50 long-range widebody jets valued at $10 billion between Boeing Co. and Airbus SAS as the U.S. carrier made its first aircraft purchase in 11 years. UAL Corp.’s United will buy 25 A350s and 25 Boeing 787 Dreamliners, with deliveries scheduled from 2016 to 2019. The Chicago-based airline also holds future purchase rights for 50 of each jet. A shrinking U.S. airline industry gave United, the third-largest U.S. carrier, more power in negotiating discounts from the planemakers. The new aircraft will replace Boeing 767s and 747s with more fuel-efficient models that have greater range and fewer seats. “The order can be a major positive for United Airlines going forward for a variety of reasons,” Helane Becker, an analyst at Jesup & Lamont Securities in New York, said in a note today. “The company gains flexibility at a minimal cost.” Becker raised her rating on UAL to “buy” from “hold.” Sharing the order gives Toulouse, France-based Airbus its first
“The mix of Airbus A350 and Boeing 787 aircraft give us the right range of aircraft sizes needed to replace both our Boeing 747 and 767 aircraft. … Sources: http://news.google.com/news/url?sa=t&ct2=us%2F0_0_s_0_0_t&usg=AFQjCNH0YNQprQYVUdYE8SFyXy8Gx_YZ6w&cid=1485277371&ei=F54eS-DBM4XJmQeb_rnpAQ&rt=SEARCH&vm=STANDARD&url=http%3A%2F%2Fblog.seattlepi.com%2Faerospace%2Farchives%2F187558.
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