Mar-12-2007  UPDATE 2-Continental, others buy Boeing jets worth $4.5 bln(topic overview)CONTENTS:
REFERENCES  At list prices, the five new planes are worth about 916 million dollars. Continental says it's the first airline in the Americas to ordering the 7-87-9, which will carry more passengers and fly further than the 7-87-8. This is the third order announced today for Boeing. [1] The plane has been a hit with airlines around the world, racking up 464 orders as of last week, after launching in 2004. Earlier on Monday, Boeing said it had signed an agreement to sell 12 787s to Kuwait's Aviation Lease and Finance Co., along with six smaller 737-800s, for a total of $2.26 billion at list prices.[2]  The five aircraft have a list price ranging from $178.5 million to $188 million before discounts that carriers typically receive, according to Boeing's Web site. [3] "Since we placed our initial 787 order in December 2004, we have become even more impressed with the 787 and its capabilities," said Larry Kellner, chairman and CEO. "The increased size and range of the 787-9 will allow us to serve more cities with the lowest operating seat cost of any aircraft in our fleet. This is the second time we have increased our 787 order, and demonstrates our continued confidence in Boeing and the 787."[4] The legacies hands are being forced by two things. higher fuel prices and the cost of operating a tired worn out fleet and comptitors both foreign and domestic. U.S. is evaluating narrowbody aircraft as part of its fleet renewal and reportedly also for some widebodies as well.[5] Continental's mainline fleet is the youngest among all network airlines based in the U.S., with an average aircraft age of less than 10 years.[4] In addition to increasing its firm order to 25 787s, Continental has converted 12 previously ordered 787-8s into 787-9s, for a total of 17 787-9 and eight 787-8 aircraft on firm order.[4] The five new orders are for the 787-9, which can fly farther and carry more passengers than other versions of the Dreamliner. Continental also says it's converting 12 previously ordered 787-8s to the larger model, which can seat from 250 to 290 passengers.[6] Continental will also convert 12 previously ordered 787-8 models into longer-range 787-9 stretch versions, the Houston- based carrier said today in a statement.[3] If new planes ordered now are delivered as the industry slumps, the carriers getting the new planes like the 787 will benefit because of the 20% lower operating costs. American already is concerned about its huge MD80 fleet which burns 20% more fuel than its 737s. [5] With today's high fuel costs and rising environmental concerns, Continental is very focused on operating a young and fuel efficient fleet.[4] The two 777s will be delivered in the next 45 days. The airline continues to employ a flexible fleet plan that provides Continental with the ability to adjust its fleet using orders, options and retirements to meet market conditions.[4] One has to consider that the airline has plans for new long range markets - especially over the Pacific it has not made public yet. This move shows what happens when an airline is strong and can afford to move on fleet renewal. Continental is moving farther ahead of its peers.[5] If service out of Houston offers business travelers better options, DFW might see some siphoning away. Which brings us to the $1 billion question - when do the U.S. majors like American, Delta and United make their long range fleet renewal plans public? Delta seems committed to the 777LR already.[5] Boeing's 787 Dreamliner is designed to use 20 percent less fuel than comparable airplanes. The plane's first flight is scheduled for this year, and it will enter into commercial service in 2008. [6] The stretch 787-9 carries 250 to 290 passengers as far as 8,500 nautical miles, compared with the basic 787-8, which carries 210 to 250 passengers as far as 8,200 nautical miles, according to Boeing. Continental wants to add longer-range planes to serve more international cities from its hubs in Newark and Houston.[3] Houston-based Continental said it restructured its initial order with Boeing and increased the number of 787-9s, which carry more passengers and fly farther than the 787-8s.[7] American and United are being cagey. When these airlines make their moves we expect to see Boeing's order book overflow. The problem is that delays invariably push these orders closer to the next downturn and airline business cycles are brutal.[5] The plane has been a hit with airlines around the world, racking up 464 orders as of last week, after launching in 2004.[8] While it is prudent not to splurge on a new planes yet, the legacy airlines have, by and large, missed the latest order cycle.[5] The airline said the additional planes will help modernize its fleet and strengthen its international expansion opportunities.[7] The 787s will also give Continental the ability to offer more capacity on international routes that need larger aircraft to support traffic growth. [4] In addition to the 25 787s, Continental has 60 737s and two 777s on order, plus options for 82 additional 737 and 787 aircraft.[7] Continental, which carries about two thirds of all the passengers at Newark, decreased fuel consumption for each revenue passenger mile by 34 percent in the past decade. [3] REFERENCES 1. Continental orders five Boeing 787s 2. Continental buys five more 787s, worth $900 mln | Transportation | Reuters 3. APP.COM - Continental buying more long-range jets | Asbury Park Press Online 4. Continental Airlines Increases Its Commitment to the Long-Range, Fuel- Efficient Boeing 787 Dreamliner 5. IAG - Aviation and Travel - News, Information and Services 6. KSWO, Lawton, OK- Wichita Falls, TX: News, Weather, Sports. ABC, 24/7, Telemundo - Continental orders 5 long-range 787 Dreamliners 7. Continental ordering five more Boeing 787s - Houston Business Journal: 8. UPDATE 2-Continental, others buy Boeing jets worth $4.5 bln | Breaking City News | Reuters.co.uk |