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WSJ: Boeing Beats Out Bombardier, Embraer {Again} for Coveted United Orders

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WSJ: Boeing Beats Out Bombardier, Embraer {Again} for Coveted United Orders

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Old Feb 22, 2016, 11:27 am
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WSJ: Boeing Beats Out Bombardier, Embraer {Again} for Coveted United Orders

http://www.wsj.com/articles/boeing-b...ers-1456160980

Looks like another round of 737s is on deck.
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Old Feb 22, 2016, 11:36 am
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Same as this, I think:
http://www.flyertalk.com/forum/unite...confirmed.html
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Old Feb 22, 2016, 11:39 am
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Originally Posted by fumje
It's not. Different deal.
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Old Feb 22, 2016, 11:41 am
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Originally Posted by IceTrojan
It's not. Different deal.
My guess is that after last week's Air Canada order for the Bombardier C Series, a blue light special lowered the price of 737-700s some more.

United couldn't resist stocking up on such a deal.
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Old Feb 22, 2016, 11:44 am
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Originally Posted by IceTrojan
It's not. Different deal.
Oops, didn't read carefully. Article mentions alludes to first order when describing the second, so I thought they were the same.
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Old Feb 22, 2016, 11:48 am
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Originally Posted by transportprof
My guess is that after last week's Air Canada order for the Bombardier C Series, a blue light special lowered the price of 737-700s some more.

United couldn't resist stocking up on such a deal.
Considering the rumored price for the first order was in the mid-20s, it'll be interesting to see how much lower Boeing went to get UA back to the table.

(Also, it's interesting to see that UA is basically the only major airline buying 737-700s, for all the reasons noted in that first thread about the 40 plane order last month.)
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Old Feb 22, 2016, 1:29 pm
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Aren't all airline orders "coveted"?

-RM
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Old Feb 22, 2016, 1:54 pm
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Sounds like they're practically giving away these -700 turkeys just to prevent the C Series from getting a foothold in the US market. I understand that UA surely got offered a price on these frames that was too good from them to refuse, but it's still frustrating to know that we're going to be subjected to that 1950s-era fuselage cross section for a couple more decades.
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Old Feb 22, 2016, 1:58 pm
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It is gonna be 25 more 73Gs it looks like: http://finance.yahoo.com/news/united...194636760.html
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Old Feb 22, 2016, 2:10 pm
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Originally Posted by milypan
Sounds like they're practically giving away these -700 turkeys just to prevent the C Series from getting a foothold in the US market. I understand that UA surely got offered a price on these frames that was too good from them to refuse, but it's still frustrating to know that we're going to be subjected to that 1950s-era fuselage cross section for a couple more decades.
Do you have a problem with the fuselage cross section or the interiors?
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Old Feb 22, 2016, 2:34 pm
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Where do FT sages think these 65 737-700s (total of both orders) will operate?

Will they replace the A319s that were recently bought/leased used from China? Those can't have many years left in them (I hope) .
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Old Feb 22, 2016, 3:06 pm
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Originally Posted by IceTrojan
Do you have a problem with the fuselage cross section or the interiors?
Of course. Relative to the CSeries it has narrower seats and, even more importantly, twice as many middle seats.

As a passenger I would love it if UA placed a big CSeries order, but sadly that isn't going to happen. As it is I greatly prefer the UX E175s to the mainline UA 737s, and I know many others around here have that preference too. Oh well, at least SkyWest has 100 E-175E2s on order.
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Old Feb 22, 2016, 3:27 pm
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I thought the definition of "new single-aisle jets" was strictly defined as the CS100 and the E190 ( => in order to permit a proportional increase of large RJs flying).

What did I miss here?
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Old Feb 22, 2016, 3:35 pm
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Originally Posted by transportprof
Where do FT sages think these 65 737-700s (total of both orders) will operate?

Will they replace the A319s that were recently bought/leased used from China? Those can't have many years left in them (I hope) .
The A319s coming from China are all more recent deliveries than United's youngest in-service Bus.

In addition, UAL is investing in a life extension program for the entire Airbus fleet with a goal of keeping them in service for another decade or more.

Originally Posted by YUL
I thought the definition of "new single-aisle jets" was strictly defined as the CS100 and the E190 ( => in order to permit a proportional increase of large RJs flying).

What did I miss here?
This only becomes meaningful if United wants to increase the size of the 76-seater fleet. UA can grow mainline and reduce the number of 50-seaters in the UAX fleet at will. Apparently it believes cheap fuel and strong domestic demand mitigate the need for an aircraft in a size category between the E75 and 73G/319, especially if the acquisition costs are really low. The CSeries program is full of question marks and rumor persist that Bombardier has not been able to offer competitive discounts. On the other side, the Embraer E2 series is still a few years off. Boeing can likely deliver more planes in a shorter period of time at comparable cost.

Plus, with regional carriers having trouble staffing their 76-seater fleets as it is, United might as well grow mainline with existing types instead of inducting a new fleet without committing to a lot more E75s.
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Old Feb 22, 2016, 3:41 pm
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Originally Posted by YUL
I thought the definition of "new single-aisle jets" was strictly defined as the CS100 and the E190 ( => in order to permit a proportional increase of large RJs flying).

What did I miss here?
Nothing at all.

The two orders for a total of 65 new 737-700s does not increase the number of 70/76-seat jets that can be operated by United Express carriers.

It looks like United is planning to shift a lot of flying from UX to UA.
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