United Airlines swaps ten Boeing Dreamliners for 777-300ER jets
Reuters
Published Apr 23, 2015 07:56AM ET
United Airlines swaps ten Boeing Dreamliners for 777-300ER jets
By Jeffrey Dastin
(Reuters) - United Airlines said Thursday that it has swapped 10 orders of Boeing Co (N:BA) 787 Dreamliners for 10 larger 777-300ER jets, marking a victory for the plane manufacturer as it seeks to sell out the 777 planes before their production ends.
The news follows months of speculation that Chicago-based United Continental Holdings Inc (N:UAL) would make the swap, which allows it to move aircraft on to different routes to better fit customer demand. The carrier also said Thursday that it plans to retire 130 of its more than 200 50-seat planes by the end of 2015 as part of its fleet reorganization.
For Boeing, the deal signals steady demand for its widebody 777 aircraft before the company switches to production of the new 777X model later this decade. Boeing said Wednesday that its 777 production line is sold out for 2016 and half sold out in 2017, with sales extending into 2018.
While Boeing said Wednesday that it has won 25 firm orders and commitments for 777s so far this year - just short of half of its target - it was not immediately clear whether United's swap added to the count or already was part of it.
Analysts have expressed concern that Boeing might have to cut prices to shore up any production gap.
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