Printer Friendly

UNITED AIRLINES REDUCES CAPITAL SPENDING BY $5.5 BILLION

 CHICAGO, April 7 /PRNewswire/ -- After many months of negotiation, United Airlines announces it has reached an agreement with The Boeing Company (NYSE: BA), to convert orders for 49 aircraft, scheduled to be delivered between 1993 and 1996, into options and to reschedule these aircraft into the 1996-1999 period. United would forfeit significant deposits should it not take delivery before the year 2000.
 This agreement, together with a reduction in related spending, will reduce United's total capital spending plan during the 1993-1996 period by $5.5 billion. Under the agreement with Boeing, starting in August of this year, United will take no new Boeing deliveries until the introduction of the Boeing 777 aircraft in May 1995.
 This agreement follows and is in addition to United's decision in February 1992 to take 122 fewer Boeing aircraft during the 1992-1995 period.
 "We appreciate Boeing's willingness to work with us during this extraordinarily difficult period in the airline industry," said United Chairman and Chief Executive Officer Stephen M. Wolf. "As painful as these decisions are, both Boeing and United recognize that the immense economic problems the industry is facing have forced us to scale back our capital spending plans significantly. Any decision to reinstate these orders will be based on United's ability to achieve appropriate levels of profitability."
 The 49 firm orders that have been rescheduled as options include: 31 B737s, eight B747-400s, two B757-200s and eight B767-300ERs.
 As Boeing's launch customer for the B777, United will receive 11 of the aircraft in 1995. The new agreement provides for a revised delivery schedule in 1996, with the last four of the nine B777s due to United in 1996 rescheduled for delivery in 1998 (two) and 1999 (two). They will be converted from "A market" to "B market" models. The "A market" aircraft has a 5,600 statute mile maximum range; the "B market" jets will have a maximum range of 7,600 statute miles.
 DELIVERY SCHEDULE OF BOEING AIRCRAFT TO UNITED AIRLINES
 (As of April 7, 1993)
 1993 1994 1995 1996
 B737
 prior 17 21 3 -
 current 10 - - -
 B747
 prior 4 3 3 2
 current 4 - - -
 B757
 prior 18 - - -
 current 16 - - -
 B767
 prior 11 5 - -
 current 8 - - -
 B777
 prior - - 11 9
 current - - 11 5
 -0- 4/7/93
 /CONTACT: Joe Hopkins, corporate communications, 708-952-5770 or night, 708-952-4088, or Pamela Hanlon, investor relations, 708-952-7501, both of United Airlines/
 (UAL BA)


CO: United Airlines; The Boeing Company ST: Illinois IN: AIR SU:

WB -- NY055 -- 3852 04/07/93 15:11 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 7, 1993
Words:415
Previous Article:IBM OFFERS NEW 'TOOLS GUIDE' FOR OS/2 SOFTWARE DEVELOPERS
Next Article:ATLAS CONSOLIDATED MINING & DEVELOPMENT CORP. REPORTS ANNUAL RESULTS
Topics:


Related Articles
UAL ANNOUNCES CAPITAL SPENDING REDUCTION
UNITED AIRLINES ENTERS INTO DISCUSSIONS TO FURTHER REDUCE AIRCRAFT ORDERS
UNITED AIRLINES REACHES AGREEMENT WITH AIRBUS TO SLOW A320 DELIVERY SCHEDULE; OTHER AIRCRAFT TO BE RETIRED ON ACCELERATED BASIS
PENA APPLAUDS TWA, CLINTON OPEN SKIES INITIATIVES AS AIRLINE BEGINS ST. LOUIS-TORONTO SERVICE
PENA APPLAUDS NORTHWEST, CLINTON AVIATION INITIATIVES AS AIRLINE BEGINS DETROIT-BEIJING SERVICE
Ryder Finalizes 160 Million British Pound Contract With British Airways
United Airlines Significantly Reduces Planned New Aircraft Deliveries For 2002 And 2003; Operating Fleet Will Be Among World's Youngest.
Airline Finance News - North America.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters