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United to Buy Up to $3 Billion of Boeing Airplanes

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Times Staff Writer

United Airlines, which only last month placed the largest aircraft order in U.S. commercial aviation history, Friday ordered up to 32 more Boeing airplanes worth as much as $3 billion.

The order for 767-300ER extended range aircraft brings Boeing’s 1989 tally of firm and optional orders to 543 aircraft worth $30.11 billion--surpassing, in dollar terms, last year’s record orders of 636 airplanes worth $29.7 billion.

The latest agreement between the airline and the Seattle manufacturer includes 16 firm orders and 16 options. If the options are fully exercised, the order will be worth $3 billion.

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With a fleet of 412 planes, United has trailed competitors in acquiring new aircraft and has lost business as a result. Stephen M. Wolf, United’s chairman, said the airline would later this year announce a third major order, this one for wide-body planes to be used on Pacific and domestic routes.

John W. Mattis, a New York airline analyst, called the order “long overdue,” saying United’s fleet had essentially not grown at all between the beginning of airline deregulation in 1978 and the end of last year. United’s aging fleet contrasted sharply with the newer fleets of key competitors American and Delta, Mattis said.

“This is an instance of sitting back too long and having to play catch-up,” he said.

With Friday’s order, United has a total of 501 aircraft on order or option. On April 26, the Chicago-based carrier placed firm orders and options for a maximum 370 aircraft worth up to $15.74 billion.

Included were 120 firm orders and 130 options for Boeing 737 aircraft, and 60 firm orders and 60 options for Boeing 757s.

Production Delays

Five of the planes in the latest firm order will be delivered in 1991; deliveries for the firm orders will continue through 1994. If the planes on options are also ordered, the deliveries will continue into 1996.

All the new United planes will be powered by Pratt & Whitney engines.

Boeing, which has orders for 1,535 planes worth between $75 billion and $80 billion, has been troubled by production delays and complaints about quality. Several European companies have insisted that Boeing make modifications to its new 747-400s before they take delivery.

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Boeing’s backlog for firm orders extends to 1998, while backlog for planes on option extends through 1999.

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