The Chicago Tribune reports that United is close to finalizing a deal with either Airbus or Boeing to augment its long-haul fleet. UA plans to place a firm order for 25 jets with an option for up to 75 more. The decision between the 787 and A350 may come down to which company offers the deepest price cut.
Analysts think that Airbus likely holds the edge if United’s decision comes down to money, since it has a reputation for striking aggressive deals. Boeing has argued that Airbus can afford to undercut pricing because it is illegally subsidized by European governments, an argument supported by World Trade Organization judges in a preliminary ruling this fall.
Don’t hold your breath for an announcement, however. Jean Medina, a United spokeswoman, said. "We are not working toward a specific time frame. We are working toward getting the right deal for the company."
Are you suggesting that either company wouldn’t sell to an airline just because it’s on the verge of Ch 7?
Both Boeing and Airbus have a sufficient backlog of orders that if UA cancels their orders, they’ll just build the same aircraft and deliver them to someone else. When AA and Continental exercised their agreements to “jump the line” ordering 738s, Boeing didn’t increase production I believe, just rearranged what got delivered to who.
@kd5mdk: I am only suggesting that I think UA will sign with Airbus. Merely a hunch.
(although if Continental has anything to say about it, maybe UA will go with Boeing…)
I know that both companies are very anxious to sell to UA and don’t seem to be worried about a potential Chapter 7 filing by UA.