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Boeing lands new contract
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May 21, 1997: 7:59 a.m. ET
Airplane maker reportedly reaches $4 billion deal with Continental Airlines
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NEW YORK (CNNfn) -- Boeing Co. brought yet another large contract in for a safe landing when it reportedly secured an agreement with Continental Airlines.
Under the deal, reported by the Wall Street Journal, Continental will buy 40 twin-engine jets that are valued at about $4 billion.
Continental will also present its board with two proposals for the Boeing purchase in which it can name the airplane manufacturer as Continental's exclusive supplier.
Boeing has already set up sole-supplier agreements with Delta Air Lines and AMR Corp.'s American Airlines.
Continental plans to buy 10 Boeing 777 jets, which will begin to be delivered next year. It will also buy 30 Boeing 767-400 jets, which will be available several years from now. The airline wants to replace 27 aging McDonnell Douglas Corp. DC-10 jets and expand routes internationally.
The contract was highly sought after by both Boeing and Airbus Industrie, a European aerospace consortium.
Boeing's exclusive agreements have also brought criticism overseas from the European Commission, which is reviewing Boeing's proposed $14 billion acquisition of McDonnell Douglas. Officials are expected to raise antitrust concerns in their "statement of objections."
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