AirTran Could Order Up to 114 Boeing Jets

Discount carrier AirTran Airways is set to order as many as 114 narrow-body jets from Boeing Co. and aircraft lessors, according to sources familiar with the situation.

The rapidly growing unit of AirTran Holdings Inc. is set to order 50 737s with options for 50 more, and as many as 14 more 717s, after ruling out the A320 family of jets built by Boeing rival Airbus. AirTran is a major user of the Boeing 717 jetliner, which is built in Long Beach.

At list prices, which are routinely discounted, the 114 new jets would be worth just over $6 billion.

A spokesman for AirTran, which has scheduled a news conference for today to announce its decision, did not return several phone calls seeking comment. A spokesman for Boeing’s Seattle-based commercial jet unit also declined to comment.

AirTran, which is based in Orlando, Fla., and operates a hub there, had asked Boeing to build a 717 capable of flying to the West Coast. The airline hopes to add to its mostly regional routes without having to incur the extra maintenance and training costs that come with operating more than one jet model.

Boeing instead offered jets from its 737 family, including a 737-600 model with slightly more than the 117 seats on AirTran’s 717s, as well as larger models seating as many as 189 passengers in a tight layout.

Boeing currently has only 37 remaining 717 orders not including the latest AirTran deal. The Chicago-based aircraft manufacturer has considered shutting down the slow-selling program.

While still actively pursuing sales of the current 717-200 model, company officials are reluctant to invest in a new derivative that would compete directly with the 737.

Boeing’s finance unit, Boeing Capital Corp., owns most if not all of AirTran’s current fleet of 717s, which will grow to 73 jets by October, plus options for six more.