Continental to Buy 15 Jetliners From Boeing

Continental Airlines Inc. said it will buy 15 Boeing 737-900s worth at least $800 million as it replaces older aircraft and moves to cut costs. The new jets are to be delivered between May 2001 and July 2002, the Houston-based carrier said. Continental, which had acquired options to buy the planes, said it has also arranged options on an additional 25 jetliners. Like other carriers, Continental Airlines reaped strong profit in the last few years and is now looking to plow money into expanding and improving the airline. The purchase could improve chances that the airline’s pilots will vote to approve a labor contract agreed to by their union last month, because pilots generally favor newer and bigger fleets. The 737-900 has a list price of about $54 million, though carriers generally negotiate discounts. The new planes will cut the average age of the airline’s fleet almost in half, to 7.2 years from 13.8 years, the company said. Separately, Russian carrier Aeroflot said it plans to lease eight Boeing jets--six 737s and two 777s--to replace some of its aging domestic-built planes. On the New York Stock Exchange, Boeing shares fell $1.13 to close at $50.88. Continental stock fell 75 cents to $63, also on the NYSE.