Boeing sells 10 more 787s
$1.5 billion order expands Dreamliner presence in U.S.
By JAMES WALLACE
P-I AEROSPACE REPORTER
PARIS -- Continental Airlines plans to order 10 more 787 jetliners, giving The Boeing Co. another big boost in its quest to place its Dreamliner with U.S. customers.
The $1.5 billion order from the nation's fourth-largest airline could be announced as soon as today, according to an airline industry source who is attending the annual membership meeting of the International Air Transport Association here.
Continental also is ordering 34 Boeing 737s, according to another industry source. That order could be worth more than $2 billion at list prices.
Boeing would not comment on the reports.
Continental previously ordered 10 787s, although apparently only seven of those have become firm orders.
All of the planes, including the order for the next 10, are the 787-8 model, which has a list price of $148 million to $157.5 million, although Continental would have received a substantial discount off that price.
As of Monday, Boeing had 350 firm orders for its 787, a twin-engine, midsize plane that will enter service in May 2008. It has an additional 43 commitments. In all, 29 airlines or leasing companies have ordered the 787.
But the bulk of those orders have come from Asia, with some from Europe. Northwest is the only other major U.S. airline to place a firm 787 order with Boeing. It has ordered 18 planes.
Faced with soaring fuel costs, the major U.S. airlines are still struggling financially after the worst-ever industry downturn, and they have held off ordering new planes.
document.write('
');
In April, Houston-based Continental reported that its first-quarter loss narrowed to $66 million compared with a loss of $186 million in the year-ago period, while revenue rose 18 percent to $2.95 billion.
Continental is one of the six major so-called legacy carriers. The others are American, Delta, Northwest, United and US Airways. They are all struggling financially and cutting costs to try to become profitable again.
But the sky-high price of fuel -- oil is now over $70 a barrel -- is bleeding all of them.
Northwest, along with Delta, remains in federal bankruptcy protection. United only recently emerged from bankruptcy.
The 787 will be much more fuel-efficient than existing mid-size jets such as the 767 or Airbus A330. The fact that Continental is charging ahead and ordering the more fuel-efficient Boeing plane could put pressure on its competitors to eventually do the same.
Continental first announced in December 2004 that it would order 10 787 Dreamliners, but made the purchase conditional on reaching new labor accords that would save the airline about $500 million a year. Those labor agreements were reached in March 2005.
The airline had said previously it would use the 787 to beef up international routes.
Continental executives are attending the annual membership meeting of the International Air Transport Association, but they could not be reached for comment late Monday night.
The battle between Boeing's 787 and the Airbus A350 has been one of the hot topics of conversation at the IATA meeting.
More than 800 airline chiefs and industry officials are at the two-day conference, including executives from Boeing and Airbus. Both airplane makers hosted IATA dinner parties Sunday and Monday.
Although Airbus had been offering airlines the A350 as a competitor to the 787, it is widely expected to scrap the design in favor of an all-new plane. The A350, which would be a derivative of the current A330, has not done well in key showdowns with the 787.
The Boeing jet will feature cutting-edge technology such as a mostly composite airframe, including the fuselage.
P-I aerospace reporter James Wallace can be reached at 206-448-8040 or [email protected].
$1.5 billion order expands Dreamliner presence in U.S.
By JAMES WALLACE
P-I AEROSPACE REPORTER
PARIS -- Continental Airlines plans to order 10 more 787 jetliners, giving The Boeing Co. another big boost in its quest to place its Dreamliner with U.S. customers.
The $1.5 billion order from the nation's fourth-largest airline could be announced as soon as today, according to an airline industry source who is attending the annual membership meeting of the International Air Transport Association here.
Continental also is ordering 34 Boeing 737s, according to another industry source. That order could be worth more than $2 billion at list prices.
Boeing would not comment on the reports.
Continental previously ordered 10 787s, although apparently only seven of those have become firm orders.
All of the planes, including the order for the next 10, are the 787-8 model, which has a list price of $148 million to $157.5 million, although Continental would have received a substantial discount off that price.
As of Monday, Boeing had 350 firm orders for its 787, a twin-engine, midsize plane that will enter service in May 2008. It has an additional 43 commitments. In all, 29 airlines or leasing companies have ordered the 787.
But the bulk of those orders have come from Asia, with some from Europe. Northwest is the only other major U.S. airline to place a firm 787 order with Boeing. It has ordered 18 planes.
Faced with soaring fuel costs, the major U.S. airlines are still struggling financially after the worst-ever industry downturn, and they have held off ordering new planes.
document.write('
Continental is one of the six major so-called legacy carriers. The others are American, Delta, Northwest, United and US Airways. They are all struggling financially and cutting costs to try to become profitable again.
But the sky-high price of fuel -- oil is now over $70 a barrel -- is bleeding all of them.
Northwest, along with Delta, remains in federal bankruptcy protection. United only recently emerged from bankruptcy.
The 787 will be much more fuel-efficient than existing mid-size jets such as the 767 or Airbus A330. The fact that Continental is charging ahead and ordering the more fuel-efficient Boeing plane could put pressure on its competitors to eventually do the same.
Continental first announced in December 2004 that it would order 10 787 Dreamliners, but made the purchase conditional on reaching new labor accords that would save the airline about $500 million a year. Those labor agreements were reached in March 2005.
The airline had said previously it would use the 787 to beef up international routes.
Continental executives are attending the annual membership meeting of the International Air Transport Association, but they could not be reached for comment late Monday night.
The battle between Boeing's 787 and the Airbus A350 has been one of the hot topics of conversation at the IATA meeting.
More than 800 airline chiefs and industry officials are at the two-day conference, including executives from Boeing and Airbus. Both airplane makers hosted IATA dinner parties Sunday and Monday.
Although Airbus had been offering airlines the A350 as a competitor to the 787, it is widely expected to scrap the design in favor of an all-new plane. The A350, which would be a derivative of the current A330, has not done well in key showdowns with the 787.
The Boeing jet will feature cutting-edge technology such as a mostly composite airframe, including the fuselage.
P-I aerospace reporter James Wallace can be reached at 206-448-8040 or [email protected].
SWEEEEEEET!!! Good to see ONE major with the ability to order the New Boeing BAD BOY!! NWA has options, right?
