Re: A340s in United's future?

From: (Ellen Schaefer)
Date:         23 Mar 93 01:09:45 PST
References:   1
Followups:    1
Next article
View raw article
  or MIME structure

[Forwarded with Ellen's permission from an e-mail exchange.  Ellen's
disclaimer: "I'm not a spokesperson for the company, and the quotes
from the Times do not necessarily represent my own opinions."]

> If the Seattle Times had more information I'd be greatful for a bit
> more detail.

Here are some of the excerpts that probably started the rumors:

   Feb. 14, 1993:  "Is Airbus Industrie, the European rival to
   the Boeing Co., about to risk an international trade war to
   drastically under cut Boeing's newest model, the 777 twinjet?
   [several paragraphs skipped] Late last week, Boeing disputed
   reports that United, one of its biggest customers, intends to
   cancel orders for 86 jetliners scheduled for delivery between
   now and the end of 1995.  But senior United executives had
   quietly spread that word among key industry analysts earlier
   in the week. ...

   Word on Wall Street is that Airbus is offering Northwest's
   A340s to United under terms that translate into a 23-30 per-
   cent discount of the list price of $105 million a jet.    
   Because Airbus is sponsored by social democratic governments
   concerned with keeping workers employed, Airbus' only other
   alternative would be to build the jets and park them as so-
   called 'white tails', ..                      

   Now along comes Airbus pitching the long-range, four-engine
   A340 for the bargain basement price of $85 million.  The
   jet is available immediately for minimal out-of-pocket cash
   via a so-called 'walk-away lease', industry sources said.
   Under such a lease, an airline essentially pays rent for the
   airplanes, with little or no money down, and can return the
   jets at any time to Airbus.

   'If you're United, how do you resist this deal?  You don't,"
   said Mark Bobbi, market analyst at Forecast International.

   Feb. 11, 1993:  "A worry for Boeing is that Eorpean Airbus
   Industrie, the European consortium also suffering from 
   delivery delays and cancellations might try to entice
   United to lease its jets instead of buying Boeing airliners.
   United did just that last July in leasing A320s instead of
   buying Boeing 737s."

-Ellen L. Schaefer