Boeing Co has won an order for 25 current-generation Boeing 737 aircraft from United Continental Holdings Inc, beating rivals including Canada’s Bombardier Inc for the second time in a month, two industry sources said on Monday.
The deal, which is said to involve the 126-seat 737-700 model, would be worth just over $2 billion at list prices.
The deal with Boeing, first reported by the Wall Street Journal, comes weeks after United agreed to buy 40 Boeing 737-700 jets listed at $3.2 billion.
Bombardier said last week it was in talks with United after winning an order from Air Canada for 45 of its CSeries jets, the first from a top flag carrier since 2011.
The CSeries, a new carbon-composite aircraft whose two models seat between 100 and 160 passengers, is due to enter service in 2016 after years of delays and budget overruns.
A spokeswoman for the Montreal-based plane and train-maker declined to comment on the United deal. Another potential competitor for the order, Brazil’s Embraer SA, also declined to comment.
United has long outsourced short-haul flights to regional contractors that operate planes from Embraer and Bombardier. However, those planemakers have yet to unseat Boeing or Airbus Group SE to gain a foothold in United’s owned and operated fleet.
The latest deal would come as Chicago-based United aims to cut the number of 50-seat planes flown under its United Express brand in half by 2019, reducing its reliance on contractors as a shortage of regional pilots looms in the United States.
The Boeing aircraft also burn less fuel per passenger than the 50-seaters and have space for multiple cabin classes, giving United the chance to up-sell to customers.