United Places Record Order With Boeing

United Airlines, responding to passenger concerns about aging aircraft and pilots’ desire for a commitment to expansion, today announced a $15.74-billion order with Boeing Commercial Airplanes for 370 planes--the biggest in commercial aviation history.

“With today’s historic order, we have addressed United’s need to expand and modernize our narrow-body fleet into the 21st Century,” United Chairman Stephen Wolf told reporters. “Our next step will be to complete the modernization of our wide-body fleet. We hope to be able to take action on that shortly.”

The order includes 120 firm orders and 130 options on Boeing 737s--models 300, 400 and 500--and 60 firm orders and 60 options for Boeing 757s.

Largest Aircraft Order

It is the largest aircraft order in history both in terms of the number of planes involved and the total cash outlay to a single manufacturer. In terms of total cash value, it ranks second behind the $17-billion order placed with Boeing, McDonnell Douglas and Europe’s Airbus earlier this month by the GPA Group, an Irish aircraft leasing firm.

Wolf told a news conference that the order addresses both airline passengers’ growing concerns over aging airline fleets and United pilots’ desire for a demonstration of the airline’s commitment to its core airline business and its “willingness to grow.”

“In addition to telling the traveling public that United’s fleet will be among the youngest in the industry, today’s announcement has another message--that United intends to expand aggressively in key markets, build our hubs and take advantage of every possible international opportunity available,” Wolf said.

Delivery Dates

The 737s on firm order are to be delivered between July, 1991, and July, 1995, while the 737s under option are for delivery between July, 1995, and December, 1998. All the 737s will be equipped with General Electric CFM-56 engines.

The 60 757s on firm order are to be delivered between February, 1991, and August, 1993, while the 60 under option are for delivery between August, 1993, and February, 1996. The 757s will be powered by Pratt and Whitney 2037 engines.

In addition to the 370 planes included in the new order, United is still taking delivery of 110 737-300 aircraft and 30 757s previously ordered.

In 1988, Boeing received a record number of plane orders--636 aircraft, with prices totaling a record $29.7 billion. So far this year--not including the United order--Boeing has firm orders for 319 planes, worth $19.7 billion.