Tags: boeing | united | 737 | jets

Boeing Said to Win $8.4 Billion United Order for 737 Jets

Monday, 09 July 2012 12:25 PM

Boeing Co. is set to win an order this week from United Continental Holdings Inc. for 100 of the planemaker’s 737 jets in a transaction that may be valued at about $8.4 billion, people familiar with the matter said.

The accord includes options for as many as 100 more jets and will be announced July 12 in Chicago, Boeing and United’s hometown, said two of the people, who asked not to be identified because details aren’t public. The order will include the upgraded 737 MAX model, the people said.

A deal later this week would be a boost for Boeing as it promotes the MAX at the Farnborough air show outside London. The company wasn’t offering the jet at the 2011 expo in Paris, where Airbus SAS routed Boeing with sales and commitments for its revamped single-aisle A320neo.

United’s mix of MAX jets and current 737s will determine the jets’ list value. The 737-8, the top-selling existing model, retails for $84.4 million, and the MAX 8, the equivalent new plane, is $95.5 million, according to Boeing’s website.

The order is United’s first since the 2010 merger creating the carrier from former United parent UAL Corp. and Continental Airlines Inc. Boeing was Continental’s exclusive plane supplier for two decades, and the accord deepens ties between the world’s largest airline and the biggest aerospace company.

United declined to comment, said Christen David, a spokeswoman. A Boeing spokesman, Tim Bader, said the company had no comment.

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Monday, 09 July 2012 12:25 PM
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