Boeing won a hotly contested United Airlines order for 40 of the aircraft maker’s smallest jetliners, thwarting Bombardier’s bid for its struggling C Series model.
The new Boeing 737-700 planes will enter service in mid-2017 as the airline cuts its use of cramped regional jets, United Continental Holdings said in a statement Thursday. The order would be valued at $3.22 billion based on list prices, although airlines typically negotiate significant discounts. Southwest Airlines separately said it was acquiring 33 of the Boeing single-aisle jets.
United decided to stick with the 737, an updated version of a plane that debuted in 1965, instead of the brand-new C Series, which boasts greater fuel and maintenance savings. Sales of the Canadian-made aircraft, which Bombardier is using to target the 100- to 150-seat market, have been thwarted by production delays and competition from market leaders Boeing and Airbus.