United Airlines Plans $10B Jet Order; Boeing vs Airbus

[Matt Molnar]

United Plans Huge Jet Order
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]

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

[hiss srq]

Wow that is a bit shocking since Unite appears to be in the worst shape of all of them. I honestly think this one could go either way but Knowing the way Airbus markets and the fact that Tilton is known at least among friends of mine at UA for taking "Easy Street" my guess is going Airbus.

[T-Bird76]

the fact that Tilton is known at least among friends of mine at UA for taking "Easy Street" my guess is going Airbus.

Is this an offical management opinion or the opinion of the disgruntled underlings?