Boeing's agreement with United in 2015 was a win for both sides.


New York (AirGuideBusiness - Business & Industry Features) Tue, Dec 29, 2015 - Boeing's agreement with United Continental earlier this year was a win for both sides. Boeing got 10 more orders for its 777 backlog. It also opened up 10 near-term delivery slots for the highly sought-after 787 Dreamliner. This may have helped it seal a deal announced in October to sell 19 Dreamliners to Norwegian Air Shuttle. Since 787 delivery slots in the next few years are extremely scarce, Norwegian Air Shuttle probably agreed to pay more than United was slated to pay for the same planes. That in turn made it possible for Boeing to offer United big discounts on the 777s it ordered. For United Continental, the deal made sense because it wants to convert some of its current 777s to a high-density configuration for domestic service. The 777-300ER will replace these smaller 777-200s, allowing United to add seats in markets like its slot-constrained Newark hub. United could also potentially use some of the 777-300ERs to replace older 747s that are ripe for retirement. Boeing needs more deals like this. Boeing has a massive order backlog today, but it is very...

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