Matt Molnar
2009-06-04, 02:12 AM
United Plans Huge Jet Order (http://digg.com/d1suiy?t)
Boeing, Airbus to Vie for Possible Purchase Worth $10 Billion; Exploiting the Slump
JUNE 4, 2009
By SUSAN CAREY
United Airlines has asked Boeing Co. and Airbus to propose dueling bids for up to 150 new airliners -- the latest example of major companies exploiting the recession to bargain-hunt.
For the two aircraft makers, the deal could be worth more than $10 billion at a time when both are watching other customers cancel or defer orders. By staging a winner-take-all competition, United's parent, UAL Corp., is hoping to obtain better terms than otherwise might be available, according to people familiar with the situation.
It's a notable move amid falling travel demand and a tight lending environment -- on top of UAL's recent heavy losses and poor credit rating. But even in good times aircraft builders will go to considerable lengths to lock in an order, using in-house financing arms and other maneuvers to help airlines buy. Their goal: Ensure a steady appetite for their product in the notoriously volatile airline business. [Full Article (http://digg.com/d1suiy?t)]
Here's some trickery to get through WSJ's subscription screen...click this, then click the story and you'll be in: http://news.google.com/news?pz=1&ned=us ... t+Order%22 (http://news.google.com/news?pz=1&ned=us&hl=en&q=%22United+Plans+Huge+Jet+Order%22)
Boeing, Airbus to Vie for Possible Purchase Worth $10 Billion; Exploiting the Slump
JUNE 4, 2009
By SUSAN CAREY
United Airlines has asked Boeing Co. and Airbus to propose dueling bids for up to 150 new airliners -- the latest example of major companies exploiting the recession to bargain-hunt.
For the two aircraft makers, the deal could be worth more than $10 billion at a time when both are watching other customers cancel or defer orders. By staging a winner-take-all competition, United's parent, UAL Corp., is hoping to obtain better terms than otherwise might be available, according to people familiar with the situation.
It's a notable move amid falling travel demand and a tight lending environment -- on top of UAL's recent heavy losses and poor credit rating. But even in good times aircraft builders will go to considerable lengths to lock in an order, using in-house financing arms and other maneuvers to help airlines buy. Their goal: Ensure a steady appetite for their product in the notoriously volatile airline business. [Full Article (http://digg.com/d1suiy?t)]
Here's some trickery to get through WSJ's subscription screen...click this, then click the story and you'll be in: http://news.google.com/news?pz=1&ned=us ... t+Order%22 (http://news.google.com/news?pz=1&ned=us&hl=en&q=%22United+Plans+Huge+Jet+Order%22)