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United, Southwest buy 73 Boeing jets in blow to Bombardier
rueters ^ | 01/21/2016

Posted on 01/21/2016 1:14:39 PM PST by BenLurkin

Reuters reported in October that Bombardier had offered the CSeries to Southwest, a long shot since the airline maintains an all-Boeing fleet.

The CSeries is due to enter service in 2016 after delays and amid cash problems at Bombardier. The plane maker did not immediately respond to requests for comment. A spokeswoman said this week the plane is "a top contender in several key campaigns."

Delta Air Lines Inc on Tuesday said it was considering Bombardier's new aircraft.

Another competitor for the United order, Brazil's Embraer SA, declined to comment on the Boeing deal.

United is expected to buy more small jets because it lacks planes in the 100-seat niche, Cowen and Co analyst Helane Becker said in a research note.

United, the second-largest U.S. airline by capacity, likely paid well below half the $80.6 million catalog price for the Boeing 737-700s, industry sources said. The plane is being phased out in favor of a newer model, the 737 MAX, and United's jets are due to start entering its fleet in mid-2017.

Airlines typically enjoy discounts of 40 percent or more on aircraft. Bombardier has been reluctant to discount the CSeries, a new product that has yet to recover development and early manufacturing costs.

Boeing's 737-700 long ago recovered such costs, allowing greater discounts for sales that help fill the production schedule as it shifts to the MAX, due to make its first flight this year.

Bombardier has 243 firm orders for the CSeries, shy of its target of 300 orders by the time the plane enters service.

(Excerpt) Read more at in.reuters.com ...


TOPICS: Business/Economy
KEYWORDS: boeing; bombardier; southwest; united

1 posted on 01/21/2016 1:14:39 PM PST by BenLurkin
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To: BenLurkin

From purely a marketing strategy, I would not build or buy passenger jets with the word “Bomb” in the name.

Just saying...


2 posted on 01/21/2016 1:16:27 PM PST by thackney (life is fragile, handle with prayer)
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To: BenLurkin

The Boeing 73X is the most successful plane ever made. All things being equal, it makes sense to go with a proven winner as opposed to something new.


3 posted on 01/21/2016 1:18:51 PM PST by Gamecock ( Do not be afraid of those who kill the body but cannot kill the soul...Matthew 10:28)
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To: thackney

Actually no. The base word is bombard, so one could argue it is what the aircraft is doing, not being done to oit. And that is what we think of when hearing “bombardeer” - guys in bomber jackets on B-17s! (Oops, no pun, those Boeings!)


4 posted on 01/21/2016 1:21:03 PM PST by the OlLine Rebel (Common sense is an uncommon virtue./Federal-run medical care is as good as state-run DMVs.)
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To: BenLurkin

My guess is that Boeing could convert the planes on the United and Southwest orders to 737 MAX 7 planes if possible.


5 posted on 01/21/2016 1:27:30 PM PST by RayChuang88 (FairTax: America's Economic Cure)
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To: the OlLine Rebel

The difference is appealing to those informed in the aviation world, while the majority are just nervous cattle moved through the air.

As I said, only for marketing reasons, not valid reasons.


6 posted on 01/21/2016 1:30:02 PM PST by thackney (life is fragile, handle with prayer)
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To: BenLurkin

I much prefer Boeing but must admit that Airbus builds some nice aircraft.I’ve flown the 380 a couple of times and while it’s ugly as sin it is a nice aircraft.Anything other than Boeing and Airbus are just junior varsity.


7 posted on 01/21/2016 1:32:14 PM PST by Gay State Conservative (Obamanomics:Trickle Up Poverty)
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To: thackney; Former Proud Canadian; Squawk 8888
From purely a marketing strategy, I would not build or buy passenger jets with the word “Bomb” in the name.

I think I've traveled on a highway in Quebec that's named Bombardier.Somehow I think that might be a person's name.

8 posted on 01/21/2016 1:35:52 PM PST by Gay State Conservative (Obamanomics:Trickle Up Poverty)
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To: Gay State Conservative

The A-321 is a fine plane. Back and forth twixt LAX/CLT a couple of times a year.


9 posted on 01/21/2016 1:44:11 PM PST by onedoug
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To: BenLurkin

I hate regional jets. A tuna can in the sky. Give me a good old Boeing aircraft anytime.


10 posted on 01/21/2016 1:48:01 PM PST by r_barton ("Trump" word origin "Triumph" - Merriam-Webster Dictionary)
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To: Gay State Conservative

“Airbus builds some nice aircraft”

They fall apart in the sky on occasion, they aren’t as well made. I wouldn’t judge based on the interior. The 737 is the DC-3 of this era, long since refined and perfected, far better than the competitors.


11 posted on 01/21/2016 2:40:50 PM PST by DesertRhino ("I want those feeble minded asses overthrown,,,")
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To: BenLurkin

Nice plane.
12 posted on 01/21/2016 2:55:03 PM PST by jpsb
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To: BenLurkin

Knowing what I know about Bombardier they made the right choice.


13 posted on 01/21/2016 3:39:19 PM PST by VTenigma (The Democratic party is the party of the mathematically challenged)
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