Boeing, Embraer Split $2.3 Billion Aircraft Order From United
Boeing Co. and Embraer SA win orders valued at $2.3 billion from United Airlines.
(Bloomberg) -- Boeing Co. and Embraer SA won orders valued at $2.3 billion from United Airlines in a boost to an alliance the two planemakers announced earlier this month.
United Continental Holdings Inc. will buy 25 Embraer E-175 planes and four Boeing 787-9 Dreamliners, it said in a statement Monday. At list prices, the Embraer jets are worth about $1.2 billion in total, while the widebodies are worth $1.1 billion excluding customary discounts. Deliveries are set to start in the next two years.
The new E-175 aircraft will replace Bombardier Inc. CRJ-700s flown by the regional unit of United, while the Dreamliners, featuring its new Polaris business class seats, will replace other widebody jets, the airline said. The announcement doesn’t change United’s previously announced outlook for adjusted capital expenditure, and the carrier will continue to look to buy used aircraft, according to the statement.
Boeing formed a $4.75 billion venture with long-time industrial partner Embraer earlier this month, primarily aimed at the market for smaller jetliners. That was after Airbus SE agreed to take control of the C Series -- the advanced jetliner from Bombardier Inc. Boeing and Embraer have said they plan to form a second joint venture to develop new markets for defense products and applications that bolster the Brazilian company’s military portfolio, including its KC-390 cargo aircraft.
The Chicago-based airline operates about 757 planes, while its regional brand United Express has 551 aircraft in its fleet.
To contact the reporters on this story: Anurag Kotoky in New Delhi at akotoky@bloomberg.net;Justin Bachman in Dallas at jbachman2@bloomberg.net
To contact the editors responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net, ;Brendan Case at bcase4@bloomberg.net, Sam Nagarajan, Dave McCombs
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