logo
Plus   Neg
Share
Email

Bloomberg: United Continental Close To Deal With Boeing To Buy 200 Planes

United Continental Holdings (UAUA,UAL) is in exclusive negotiations with Boeing Co. (BA) to buy around 200 narrow body jets, Bloomberg reported quoting two people familiar with the matter.

Discussions to purchase Boeing 737s or Airbus A320s and variants with new engines have been going on for at least six months.

The airline is now said to have dropped its discussions with Airbus SAS, a unit of European Aeronautic Defence and Space Co. or EADS NV (EADSY.PK,EADSF.PK).

If the deal materializes, it will be a major win for Boeing, which has been lagging behind Airbus in procuring orders from small carriers.

Two-thirds of the planes flown at United Continental, formed through the merger of UAL Corp. and Continental Airlines Inc. in 2010, are from Boeing. The 737 is the most widely flown plane in the world.

A factor that may work in favor of Boeing is that the current management of United Continental comes mostly from Continental, which only flew planes from Boeing.

UAL closed on Monday at $22.85, down $0.06 or 0.26 percent, on a volume of 4.41 million shares.

BA settled at $72.86, down $0.69, on 5.02 million shares.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Walmart is ditching its dress code policy and is testing a new dress code that will allows "associates" to wear blue denim and shirts of any solid color. The updated dress coded guidelines now allow employees to wear blue "jeggings" and blue jeans and shirts of any solid color, according to a Walmart... Canadian investment firm Fairfax Financial Holdings Ltd. has submitted a "stalking horse" bid worth C$300 million, or $237 million, for the Canadian unit of Toys "R" Us, according to court documents. A stalking horse bid is an initial bid on the assets of a bankrupt company. The bankrupt company will choose an entity from a pool of bidders who will make the first bid on its assets. The car rental market in the U.S. is consolidating as large car rental companies are buying smaller, local companies to expand their portfolio of premium and value brands. The key players in the U.S. market include Enterprise Holdings, Hertz Global Holding and Avis Budget Group. Let's take a look at some of the best and worst car rental companies in the U.S.
Follow RTT