Updated: 09:57 PM EDT
Northwest Airlines Set To Order Up To 18 Boeing 787s
DALLAS -- Northwest Airlines Corp. (NWAC) is in final negotiations to order as many as 18 Boeing 787 Dreamliner airplanes after ruling out a competing proposal from longtime supplier Airbus, people familiar with the situation told The Wall Street Journal.
The deal would be worth a total of about $2.1 billion at list prices. If concluded, it would expand a recent string of wins for Boeing Co.'s (BA) newest airplane, a twin-engine 250-seater being billed by the company as 20% cheaper to operate than other jetliners its size.
The loss would a blow for Airbus, which had been hoping that Northwest's existing fleet of A330 jetliners would give it the home court advantage with its proposed new A350 jetliner.
But according to several people familiar with the situation, the airline recently notified Airbus that it had decided to pursue a deal with Boeing. The airline also has picked engines from General Electric Co. (GE) over those made by Rolls-Royce PLC, giving GE an important win as well.
A Northwest spokesman declined to confirm whether the Eagan, Minn., airline had selected the 787, saying "Northwest continues to be in discussions with all of our manufacturers."
Spokespeople for Boeing and GE declined to comment, citing policies about not commenting on negotiations with customers. An Airbus spokeswoman also declined to comment.
- By J. Lynn Lunsford and Daniel Michaels, The Wall Street Journal
Dow Jones Newswires 04-11-052141ET
Northwest Airlines Set To Order Up To 18 Boeing 787s
DALLAS -- Northwest Airlines Corp. (NWAC) is in final negotiations to order as many as 18 Boeing 787 Dreamliner airplanes after ruling out a competing proposal from longtime supplier Airbus, people familiar with the situation told The Wall Street Journal.
The deal would be worth a total of about $2.1 billion at list prices. If concluded, it would expand a recent string of wins for Boeing Co.'s (BA) newest airplane, a twin-engine 250-seater being billed by the company as 20% cheaper to operate than other jetliners its size.
The loss would a blow for Airbus, which had been hoping that Northwest's existing fleet of A330 jetliners would give it the home court advantage with its proposed new A350 jetliner.
But according to several people familiar with the situation, the airline recently notified Airbus that it had decided to pursue a deal with Boeing. The airline also has picked engines from General Electric Co. (GE) over those made by Rolls-Royce PLC, giving GE an important win as well.
A Northwest spokesman declined to confirm whether the Eagan, Minn., airline had selected the 787, saying "Northwest continues to be in discussions with all of our manufacturers."
Spokespeople for Boeing and GE declined to comment, citing policies about not commenting on negotiations with customers. An Airbus spokeswoman also declined to comment.
- By J. Lynn Lunsford and Daniel Michaels, The Wall Street Journal
Dow Jones Newswires 04-11-052141ET
