United Got a Deal on Airbuses, Analysts Say : Aerospace: The European consortium is believed to have cut prices to the bone to land the order.

Faced with a glut of A320s in the market and leasing companies hungry to place their planes, Airbus Industrie probably cut prices to the bone in its recent deal with UAL Corp., aerospace analysts said Friday.

But the four-nation European consortium may have limited its exposure by forcing the leasing companies to take some of the risk in the deal, they said.

UAL, the parent of United Airlines, announced Wednesday that it had agreed to lease 50 A320s and take options on 50 more in a deal that may be worth as much as $2.4 billion.

It was the first time in years that United chose planes from a manufacturer other than Boeing Co., the industry leader.

“I have a feeling they structured the deal rather favorably by getting the leasing companies to take some of the risk,” said Sandy Morris of brokers County Natwest. “It was better to take this deal at no profit, or perhaps a small loss, than not at all.”

While analysts say the A320 has several technical advantages over Boeing’s competing 737-400, many believe that the financing of the transaction may have been decisive.

“There is a very substantial overhang of A320s, particularly of the V2500 (engine) type, in the market,” said Paul Nisbet, an aerospace analyst with Prudential Securities Inc.

“You have a list of A320 customers in the U.S. that were very shaky,” he said, mentioning Northwest Airlines and America West Airlines. “There was simply no assurance at this point that they were going to be able to take them.”

Northwest, taken private in a 1989 leveraged buyout, had 30 A320s in its fleet and another 70 on order at the end of May.

America West, which is operating under Chapter 11 bankruptcy protection, flies 18 A320s and has 24 on order.

Analysts said the possibility that these airlines or others might cancel may have pressured Airbus into a generous United deal.

Several analysts speculated that Airbus granted United generous lease terms, citing industry talk that it gave the airline the option of returning the planes after three years.

“Basically, we think Airbus told United, ‘We’re going to park these aircraft. Why don’t we park them on your Tarmac instead of ours?’ ” said a U.S. aerospace analyst who asked not to be identified.

Airbus has steadfastly declined to comment on financing, but said the deal’s overall structure was similar to Boeing’s offer.

In an unrelated development, Airbus Industrie of North America Inc. announced Friday that James A. Bryan Jr. was resigning as president and chief executive of the aircraft manufacturer next month.

Bryan, who took over the U.S.-based unit of the European consortium in 1986, said his contract was expiring soon and it was a good time to pursue other interests.