United (UAL) in Final Talks for Massive Boeing (BA) 737 Deal
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United Continental (NYSE: UAL) shares are showing some strength Friday following reports the company might be in final talks for 100 Boeing (NYSE: BA) 737 narrowbody aircraft.
List price on the order would be near $10 billion at current market prices. The order may swell to 200 units should United exercise an option for an additional set of the 737s.
Most of the 737s will be Boeing's 737 MAX version, which is said to be a more economical solution for airliners who are already being crimped by building fuel prices as well as increased competition.
Completion of the deal should be done within the next few weeks, said Reuters, citing sources close to the matter.
Boeing's 737 MAX isn't expected to enter service until 2017 and will be competitive with Aribus' A320neo, which will start service in 2015.
United shares are up over 3 percent on the session while Boeing shares are about 1 percent lower.
List price on the order would be near $10 billion at current market prices. The order may swell to 200 units should United exercise an option for an additional set of the 737s.
Most of the 737s will be Boeing's 737 MAX version, which is said to be a more economical solution for airliners who are already being crimped by building fuel prices as well as increased competition.
Completion of the deal should be done within the next few weeks, said Reuters, citing sources close to the matter.
Boeing's 737 MAX isn't expected to enter service until 2017 and will be competitive with Aribus' A320neo, which will start service in 2015.
United shares are up over 3 percent on the session while Boeing shares are about 1 percent lower.
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