Republic Airways orders 40 Bombardier aircraft; United Airlines also orders aircraft
As a result, the AMEX Airline Index (-0.7%) slipped, despite a 2.3% decline in oil prices, to USD78.17.
Republic Airways orders 40 Bombardier aircraft
Republic Airways (+3.9%) was the day’s biggest gainer, following news it has ordered 40 CS300s from Bombardier. Republic also took options for up to 40 additional aircraft. The aircraft, configured in a single-cabin, with 138 seats in two-by-three configuration, including 25 'STRETCH' seats, are scheduled for delivery from 2Q2015. The contract is valued at approximately USD3.06 billion at list prices, which could increase to approximately USD6.34 billion if all options are exercised. See related report: Republic still holding centre stage: Blockbuster Bombardier CSeries order
United Airlines also orders aircraft
United Airlines slipped (-0.1%) only marginally and Boeing announced (25-Feb-2010) a firm order for 25 787-8 aircraft has been finalised. The order, which includes an option for 50 aircraft, is valued at USD4.2 billion at average list prices. With the delivery of the B787s, United will begin retiring its B747/B767s on international services.
In other United news, Air Line Pilots Association President, Capt. John Prater, stated consolidation within the US airline industry is “inevitable” claiming a combination between United Airlines and Continental Airlines (+0.8%) makes most sense as few routes overlap.
Southwest Airlines (-0.1%) also stated during trading it is open to acquisitions. See related report: Southwest sticks to organic growth strategy; GOL to become a oneworld alliance member?
TAM down again
TAM (-2.6%) meanwhile made the biggest fall of the day, over continuous speculation regarding the sale of shares in competitor, LAN (+0.1%). LCC, GOL (-2.4%) was also down. GOL is reportedly considering joining the oneworld alliance.
Other stories available in today’s America Airline Daily:
- American Eagle to introduce first class on all CRJ-700s;
- JetBlue and Delta Air Lines decrease services to/from JFK;
- US Airways and Brussels Airlines pursue codeshare agreement;
- Air Canada's Top Tier members enjoy upgrades.
North & South America selected airlines daily share price movements (% change): 25-Feb-2010