Boeing Gets Order From Continental for 25 New 757s
HOUSTON — Continental Airlines has ordered 25 new Boeing 757 jets--with an option for 25 more--in a multibillion-dollar deal, airline officials said Monday.
“We’re looking at the long-term needs of the airline,†Continental spokesman David Messing said. “We know we have higher fuel prices, and some expect a recession, but we want to add capacity for when the economy returns to strength.â€
The order for the first 25 jets is valued at $1.2 billion, Messing said. The option on the second package of jets is valued at about the same price, with allowances for inflation about the time the option is exercised, he said.
The 757, a twin-engine aircraft that seats up to 190 passengers, will replace older aircraft when delivery begins in May, 1993.
The planes would help the airline save money if fuel prices remain high because they’re more fuel-efficient than other models, Messing said.
“This order is a significant component of a well-reasoned fleet plan we have developed for the ‘90s and beyond,†said Continental Chairman and Chief Executive Hollis L. Harris.
The order will be largely financed by Boeing Co. and the engine manufacturer, Continental said in a prepared statement.
Continental has yet to choose between Rolls-Royce or Pratt & Whitney to make the engines.
In Seattle, Boeing Commercial Airplane Group spokesman Craig Martin declined to discuss Boeing’s financial arrangement with Continental. “We never comment on such arrangements with our customers,†Martin said.
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