logo
Share SHARE
FONT-SIZE Plus   Neg

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 RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Anglo-Dutch oil giant Royal Dutch Shell plans to cut 2,200 more jobs, as the company continues to face lower oil prices, media reported Wednesday citing an emailed statement. The latest round of cuts would bring the total job cuts this year to at least 5,000 globally. In the U.K. and Ireland, the company plans to reduce staff working in exploration and production by 475. Tiffany & Co. (TIF) reported first-quarter net earnings of $87 million, or $0.69 per share compared to $105 million, or $0.81 per share, in the prior year. The company noted that its first-quarter results included a tax benefit of $0.05 per share related to the settlement of a tax examination. On average,... Shares of Marks & Spencer Group plc were losing around 8 percent in the early morning trading in London, after the retailer reported lower profit in its fiscal 2016, hurt mainly by weak results at clothing & Home segment and lower UK LFL sales. Looking ahead, the company warned about profit, and said it sees a similar sales trend in fiscal 2017.
comments powered by Disqus
Follow RTT