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Boeing Gets $22-Billion Order From United

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From Reuters

Less than a week after rejecting an employee-led buyout offer, UAL Corp., parent of United Airlines, said today that it has ordered $22-billion worth of aircraft from Boeing Co.

The order, which UAL Chairman Stephen Wolf said is the largest in aviation history, includes firm commitments for 34 Boeing-777s and 30 Boeing 747-400s.

It also includes options on 34 777s and 30 747-400s from Seattle-based Boeing, the nation’s biggest airplane manufacturer.

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Wolf said Chicago-based United will receive the 777s between 1995 and 2000, and the 747-400s between 1994 and 2004. The 777s, which Boeing has not yet built, will replace DC-10 aircraft on its domestic routes, United said.

Boeing said in September that it might shelve plans for the 300- to 400-seat 777 unless it got enough orders by the end of the year.

The jetliner will be larger than Boeing’s current 767 but smaller than its 747 jumbo jet.

UAL’s announcement comes six days after UAL’s board of directors rejected a buyout offer from a union-led group that has been trying in one form or another to take over the company for more than three years.

The board said that it is still open to a fair offer for the carrier. The pilots’ union, the lead group in the takeover bid, hinted that it would press demands for new contracts matching those secured recently by pilots of Delta Air Lines and USAir, even as it pursues ownership of the company.

But Wolf said today that the $22-billion jet deal would have no impact on contract negotiations with United’s three main unions. He said he anticipates raises for pilots, flight attendants and machinists.

“I feel absolutely fine about working with our organized employees,” Wolf said, despite rejecting the union-led buyout offer last week.

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