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UPDATE 1-United orders 25 more Boeing 737s worth $2 bln -sources

Published 2016-02-22, 05:22 p/m
© Reuters.  UPDATE 1-United orders 25 more Boeing 737s worth $2 bln -sources
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PARIS, Feb 22 (Reuters) - Boeing (N:BA) Co BA.N has won an order
for 25 current-generation Boeing 737 aircraft from United
Continental Holdings Inc UAL.N , beating rivals including
Canada's Bombardier Inc BBDb.TO for the second time in a
month, two industry sources said on Monday.
The deal, which is said to involve the 126-seat 737-700
model, would be worth just over $2 billion at list prices.
Boeing and United both declined to comment.
The deal with Boeing, first reported by the Wall Street
Journal, comes weeks after United agreed to buy 40 Boeing
737-700 jets listed at $3.2 billion.
Bombardier said last week it was in talks with United after
winning an order from Air Canada AC.TO for 45 of its CSeries
jets, the first from a top flag carrier since 2011.
The CSeries, a new carbon-composite aircraft whose two
models seat between 100 and 160 passengers, is due to enter
service in 2016 after years of delays and budget overruns.
A spokeswoman for the Montreal-based plane and train-maker
declined to comment on the United deal. Another potential
competitor for the order, Brazil's Embraer SA EMBR3.SA , also
declined to comment.
United has long outsourced short-haul flights to regional
contractors that operate planes from Embraer and Bombardier.
However, those planemakers have yet to unseat Boeing or Airbus
Group SE AIR.PA to gain a foothold in United's owned and
operated fleet.
The latest deal would come as Chicago-based United aims to
cut the number of 50-seat planes flown under its United Express
brand in half by 2019, reducing its reliance on contractors as a
shortage of regional pilots looms in the United States.
The Boeing aircraft also burn less fuel per passenger than
the 50-seaters and have space for multiple cabin classes, giving
United the chance to up-sell to customers.

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