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Continental buys 35 jets
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June 10, 1997: 9:19 a.m. ET
Carrier becomes third U.S. airline to enter exclusive pact with Boeing
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NEW YORK (CNNfn) - Continental Airlines Inc. said on Tuesday it signed a letter of intent to purchase from Boeing Co. 35 new wide-body aircraft, becoming the third U.S. carrier to reach exclusive arrangements with the aircraft maker.
In a statement, the nation's fifth largest airline said the contract, estimated in value at more than $3 billion, consists of firm orders for five Boeing 777-200 aircraft and 30 Boeing 767-400ER models. Continental also has options for additional 777 and 767 aircraft to be negotiated by the parties.
AMR Corp.'s American Airlines and Delta Air Lines Inc. have already reached similar exclusive arrangements with Boeing. Still, those agreements have been sharply criticized by European Union officials as well as Boeing's main competitor, Airbus Industrie, the European consortium.
"Continental now has a fleet plan that makes us competitive in every market well into the next century. This latest order will reduce our total cost while providing the latest in technology and comfort to our customers," said Gordon Bethune, chairman and chief executive of Continental Airlines.
The latest 20-year exclusive contract is in addition to the five 777 models which the airline already has on order with Boeing, the deliveries of which will be accelerated as part of this order.
Continental said the new jets will replace its aging fleet of six DC10-10 and 31 DC10-30 aircraft, which will be retired as the new Boeing aircraft are delivered. Some older models will also be used to expand international service.
The 777 aircraft will be delivered in September 1998 through May 1999, while the 30 767 models will be delivered in mid-2000 through the end of 2004.
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