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United to review $12.5 billion Airbus jet order

Published 30/11/2016, 20:50
Updated 30/11/2016, 21:00
© Reuters. An Airbus A350-1000 lands during its maiden flight event in Colomiers near Toulouse, Southwestern France

(Reuters) - United Continental Holdings Inc (N:UAL) said it was reviewing whether to alter an order of about $12.5 billion (9.99 billion pounds) at list prices for Airbus Group SE's (PA:AIR) largest twin-engine jets, the A350-1000s, for smaller long-haul models.

Bloomberg reported on Wednesday that United, the No. 3 U.S. airline, may swap some orders of the Airbus A350-1000s for other wide-body jets such as the A350-900, which can fly longer routes, or the smaller A330.

The airline is also considering converting some order of Boeing Co's (N:BA) 737 jets to 737 MAX 10X, a longer version of the airplanemaker's next-generation 737 MAX model, according to the Bloomberg report, which cited Chief Financial Officer Andrew Levy.

Earlier this month, United said it would convert orders for 61 Boeing 737-700 planes due to be delivered in the next two years into the newer 737 MAX model, but that it was still deciding on which size MAX planes to order.

© Reuters. An Airbus A350-1000 lands during its maiden flight event in Colomiers near Toulouse, Southwestern France

A United spokesperson told Reuters on Wednesday that the company had started a review of the orders, as an example of changes the airline's new CFO, Levy, was considering since joining in August.

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