United Airlines orders 25 Boeing 787s

The Boeing Co. won an order Tuesday for 25 of its 787 aircraft from United Airlines but lost its status as the U.S. carrier's sole widebody jet supplier.

United also handed Airbus an order Tuesday for 25 of the European jet maker's A350 XWB aircraft, marking the first request by United for Airbus twin-aisle jets. Between Boeing and Airbus, United's orders were worth $10 billion at list prices, with Boeing seeing about $4 billion.

“This aircraft order is another significant step on the path to position United for long-term success in a highly competitive global market,” said Glenn Tilton, UAL Corporation chairman, president and chief executive.

United hadn't placed an order for new aircraft since 1998. Its last new airplane was delivered in 2002. The airline also has purchase rights for an additional 50 aircraft from Boeing and Airbus. United will retire its international Boeing 747s and 767s as it receives the new airplanes.

The carrier expects to take delivery of the aircraft between 2016 and 2019.

Boeing said in a statement that it's working to finalize the deal with United.

“United's selection of the Boeing 787 continues the 80-year partnership between our two companies,” said Jim Albaugh, president and chief executive of Boeing Commercial Airplanes.

This is one of the few new orders that Boeing has received this year for its delayed 787 Dreamliner, which has logged 83 cancellations in 2009. After numerous setbacks, the company plans to fly the jet for the first time as early as next week.

Boeing hopes to deliver the first 787 in the fourth quarter of 2010. Airbus expects to deliver its first A350 in 2013.

Both planes have two aisles and would typically be used on international flights. The 787-8 seats 210 to 250 people. Airbus said the A350 seats 314 in a typical configuration. Both can fly more than 9,000 miles — enough to go nonstop from United's hub in Chicago to Shanghai.

“United Airlines is a global icon, and it's very gratifying that they have chosen the A350 to be a key part of their strategy,” said Tom Enders, Airbus president and chief executive.

United's orders come in a slow sales year for Boeing and Airbus, whose customers are dealing with decreased air traffic.

But James Bell, Boeing's chief financial officer, said the company is seeing fewer requests from airlines to defer aircraft deliveries to a later date. Through the end of September, Boeing had received 215 requests for deferral, Bell said.

“The good news is we have not seen a significant number of new deferral requests since the third quarter,” he said.

He said Boeing's commercial aircraft division will meet the low end of its 480 to 485 delivery projection for 2009.

Bell also said lending for aircraft deliveries is thawing. At the beginning of this year Boeing expected it would need to finance $1 billion worth of deliveries. Now it expects to finance $800 million. “Clearly the vast majority of our airplane deliveries this year are being financed by other sources, and we would expect that trend to continue,” he said.



The Associated Press contributed to this report.