Exclusive: United Airlines in talks to buy wide-body jets: sources

FAN Editor
FILE PHOTO: The Boeing Company logo is projected on a wall at the
FILE PHOTO: The Boeing Company logo is projected on a wall at the “What’s Next?” conference in Chicago, Illinois, U.S., October 4, 2016. REUTERS/Jim Young/File Photo

May 8, 2018

By Tim Hepher and Alana Wise

PARIS/NEW YORK (Reuters) – United Airlines <UAL.N> is in talks with planemakers Airbus <AIR.PA> and Boeing Co <BA.N> over the purchase of wide-body, long-haul passenger jets to replace a fleet of 50 Boeing 767 aircraft, people familiar with the discussions said on Tuesday.

Europe’s Airbus is expected to offer its upgraded A330neo jet against Boeing’s 787 Dreamliner in a deal potentially worth some $14 billion at list prices, the two sources said. All three companies declined to comment on the nature of the talks.

A win in the jet production contest would be especially important for Airbus, whose struggling A330neo program has lost a number of recent bids to U.S. rival Boeing for wide-body, long-haul aircraft.

Hawaiian Airlines in March chose Boeing to supply 10 new 787-9 aircraft, dropping an earlier order of the A330neo.

The European planemaker was again bested last month when American Airlines, the world’s largest carrier, chose Boeing to supply 47 new 787 Dreamliner jets.

The fate of an order for 28 A330neos from IranAir is also in jeopardy, on concerns over a Tuesday decision by U.S. President Donald Trump to withdraw the United States from an international nuclear deal.

United’s fleet already includes Boeing 787s, and the carrier has firm commitments for an additional 14 jets scheduled for delivery through 2027.

United does not fly any A330neos.

(Reporting by Tim Hepher, Alana Wise; editing by Hugh Lawson and Lisa Shumaker)

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