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Boeing, United Renegotiating Jetliner Orders : Aerospace: The manufacturer denies rumors of ‘wholesale cancellation’ of sales to the airline through 1995.

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From Reuters

The Boeing Co. said Thursday that it is talking with United Airlines and other customers about changes in orders and deliveries, but it denied remarks by industry sources that United may cancel most of its orders through 1995.

Boeing’s commercial airplane group also denied speculation that United’s orders and deliveries for the all-new 777 twin-jet through 1995 might be affected by the discussions, which several sources said involved a United request to switch to a longer-range 777 to be delivered in 1996.

Negotiations between senior executives of Boeing and its largest customer are believed to be in their final stages, and both companies previously said they would not comment until all changes were resolved.

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“These discussions don’t affect planned orders or deliveries for 777 models through 1995,” Boeing said in a statement. “Production cuts announced earlier . . . by Boeing take into account the discussions now taking place.”

Late last month, Boeing announced an average 35% production cut on all of its models and said the move took planned actions by United and other customers into account.

Earlier Thursday, aviation sources who said they had been briefed on what United was seeking said the carrier wanted to cancel most of its orders through 1995.

But the Seattle-based manufacturer said it was not true that United planned a “wholesale cancellation” of orders through 1995.

According to a delivery schedule released last year, United had intended to take delivery of 86 more aircraft in 1993 to 1995, more than half the 169 Boeing aircraft worth $9 billion it has on firm order.

United is the launch customer for the 777 and has firm orders for 34 of the aircraft, 11 initially scheduled for delivery in 1995. It has options to buy 34 more.

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As recently as three weeks ago, Gordon McKinzie, manager of the United 777 program, told reporters that the schedule was unchanged.

“Our present planning shows no change in the 777 delivery schedule out to 1998,” McKinzie said at a briefing that marked the start of final assembly on the aircraft.

Since then, several sources said United has pressed Boeing to allow it to switch to the longer-range 777 “B-market” jets, with a maximum range of 7,600 miles, from the “A-market” jetliners, which have a 5,600-mile range.

The longer-range jetliner, which must receive separate Federal Aviation Administration certification, will not be available until December, 1996, according to Boeing.

The company has firm orders for 92 of the shorter-range 777s and for 26 of the long-range jets.

Boeing’s stock closed down 75 cents at $34.25 on the New York Stock Exchange.

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