Ual Weighs Exclusive Boeing Deal
UAL Corp. Chairman Gerald Greenwald said he is considering making Boeing Co. the exclusive supplier of jetliners to United Airlines.
Greenwald said he hasn’t decided yet whether to enter such an arrangement, in which airlines earn a discount for buying from only one manufacturer.
In recent months, AMR Corp.’s American Airlines and Delta Air Lines Inc. have agreed to buy only Boeing planes for the next 20 years. Continental Air Lines Inc., which is expected to buy $4 billion worth of planes in the next few weeks, is discussing a similar agreement with Boeing.
“We’ve talked to them about it, but we’re in no hurry” to order planes, Greenwald said last week at a press conference in Frankfurt to discuss United’s newest marketing alliance with four international carriers.
Last August, United placed a $2.5 billion order for Boeing planes and a $900 million order for smaller jetliners made by Boeing’s European rival, Airbus Industrie. The Chicago-based airline bought an additional three 747-400 jetliners from Boeing in April, said Connie Huff, a United spokeswoman.
List price for a 747-400 is about $168 million, although big Boeing customers such as United typically pay less.
Losing another U.S. airline to Boeing would be a big blow to Airbus, which has said it won’t seek exclusive contracts of its own. Airbus has said Boeing’s recent agreements could violate U.S. antitrust laws.