http://www.forbes.com/business/energ...ap1732349.html

Associated Press
Continental Airlines Orders 10 Boeing 7E7s
12.29.2004, 06:46 PM

Continental Airlines Inc. on Wednesday said it agreed to become the first major U.S. airline to order Boeing Co.'s 7E7 aircraft, placing an initial order for 10 planes with the first to be delivered in 2009.

The world's sixth-largest airline said it also agreed to lease eight Boeing 757-300 aircraft to be delivered beginning in July 2005, and to accelerate the delivery of six Boeing 737-800 aircraft into 2006. The planes had been previously scheduled for delivery in 2008.

The company said Boeing agreed to provide backstop lease financing for the 737 aircraft. Additional terms of the agreement were not disclosed in a press release.

"The 7E7 is the widebody of the future for Continental and will provide the platform for our long-term international growth," said Continental president and chief operating officer Larry Kellner in a statement. "Leasing these additional 757 and 737 aircraft will be another step in outdistancing our competitors in this rapidly changing environment."

Continental said the agreements need board approval by Feb. 28, and the 7E7 agreement requires negotiations for an engine supply arrangement. The airline said it expects to finalize its $500 million in annual wage and benefit cost reductions by the deadline.

Shares of Continental closed down 7 cents, or less than 1 percent at $13.45, while Boeing shares finished down $1.18, or 2.2 percent at $52.07 on the New York Stock Exchange.