Off the press yesterday and is anyone noticing United's Stock price???
So with the article below...would the narrowbody order REPLACE the parked 737's? We don't need no stinkin c series says Airbus...we will just make our Airbus 20% more efficient....interesting.
CORRECT: United Air CFO: To Decide On New Narrowbody Planes This Year
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10:31 AM ET 3/9/10 | Dow Jones
("=United Air CFO: To Decide On New Narrowbody Planes This Year," at 9:48 a.m. EST, misstated the type of Boeing aircraft in the second paragraph. The correct version follows
By Ann Keeton
Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)--United Airlines, a unit of UAL Corp. (UAUA) is "looking at the full range of opportunities" for buying new narrowbody aircraft, and will make a decision this year, Kathryn Mikells, chief financial officer, said Tuesday.
Boeing Co. (BA) and Airbus are considering putting more fuel efficient engines in the 737 and A320, their narrowbody planes, to compete with the Bombardier C-Series, a new aircraft set to enter the market in 2013. New engines and other technology can reduce fuel cost by as much as 20%.
United in December placed an order for 25 of Boeing's larger 787 aircraft, and 25 Airbus A350s, part of its overall plan to modernize its fleet. The first planes won't be delivered until 2016.
Speaking at the J.P. Morgan Aviation, Transportation & Defense Conference, which was webcast, Mikells said United will continue to strengthen its balance sheet, and expects to begin to "throw off free cash" to benefit shareholders, as revenue grows and cost management improves.
Reporting February operating results late Monday, United said passenger revenue rose between 17% and 19% last month, compared with a year ago, the best results among major carriers to report so far.
While business passenger traffic is returning, "we're clearly not back to where we were before," Mikells said. While airlines haven't been able to implement industry fare hikes, "What people don't see is [how we are] improving inventory management," to get higher average fares.
United remains committed to a need for airline industry consolidation, Mikells said.
In an earlier presentation at the conference, Jeff Smisek, chief executive of Continental Airlines Inc. (CAL), said that airline continues to watch its competition--including Delta Air Lines Inc.'s (DAL) recent merger with Northwest Airlines. Smisek said Continental could restart merger talks with United, should the Houston carrier feel a need to "bulk up" to better compete with Delta, now the world's largest airline by passenger traffic.
-By Ann Keeton, Dow Jones Newswires; 312-750-