United Rebuffs Boeing, Orders 24 Airbus Jets European Manufacturer Wins Bidding War For Coveted Deal
United Airlines has again turned its back on Boeing 737s and placed an order for Airbus Industrie’s narrow-body jets valued at $900 million.
The Chicago-based carrier said it has ordered 24 A319s that each carry up to 145 passengers. The A319s are newer models in the Airbus A320 family, and United will be the first U.S. airline to operate them.
Boeing had hoped to sell United its new 737s, which will go into service with Southwest Airlines in about a year, but the competition was fierce with Airbus, insiders said.
“Boeing is disappointed,” said Liz Verdier, Boeing Commercial Airplane Group spokeswoman. “We do a lot of business with United, and it would have been nice to include the new 737s, but United apparently decided the Airbus planes were best for them.”
Still, Boeing last week booked a $2.5 billion order from United for 19 jumbo jets, six 757s and two 777s.
United was the launch customer for the 777 in 1990, ordering 34 and placing options for 34 more. The carrier is expected to be an early buyer, if not a launch customer, for a larger 747-500/600X that Boeing may announce at the Farnborough Air Show in England over Labor Day weekend.
Joe Hopkins, United spokesman, declined to discuss the company’s decision or whether Airbus will get full price. However, Reuters news agency quoted other officials who said: “United benefited from substantial discounts to the prices from both manufacturers,” noting that the order values were based on manufacturers’ list prices.
Delivery of the A319s, which will replace older 737-200s, is scheduled for 1997 through 1999.
United, which ordered mainly Boeing aircraft for decades, shocked the industry and Boeing in 1992 when it first ordered Airbus A320s. It has 34 in its fleet now and more on order. It also has 158 737s but so far has not ordered the new models.
The new jets will be used to replace about 95 older airliners, including 737s, 747s and DC-10s, Hopkins said.