Bloomberg's Susanna Ray reports that United Airlines plans to order up to 150 aircraft. "The order will be mix of a wide-body and narrow-body planes," according to her source. "Boeing Co. has been invited to participate in an aircraft-replacement program by the UAL Corp. unit," according to Boeing spokesman, Jim Condelles.
Susan Carey tells us in the Wall Street Journal, "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."
If Boeing wins this all or nothing bidding, it will help our own Spirit.
Given United's financial condition, the current environment disproves the adage that "Beggars can't be choosers."
Wednesday, June 03, 2009
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