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12/8/09

WSJ: United Orders 50 Wide-Body Planes From Boeing, Airbus - by Susan Carey and Daniel Michaels

For the complete report from the WSJ.com click on this link

UAL Corp.'s United Airlines confirmed Tuesday that it placed initial firm orders for 50 wide-body planes, evenly split between Boeing Co.'s 787 Dreamliner and rival Airbus's new A350 model, and arranged future purchase rights for 50 more of each. United, the third-largest U.S. airline by traffic, hadn't ordered new aircraft for 11 years. The carrier began shopping last summer, figuring it could drive a better bargain by pitting the manufacturers against each other at the bottom of the business cycle. The airline hired aviation-consulting firm Seabury Group LLC to help it negotiate.

At catalog prices, the order is valued at more than $10 billion, but major customers such as United usually win substantial discounts. These can exceed 40% off list prices, industry officials say, although actual pricing varies widely for each deal.

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