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Thu, Jan 16, 2014

United Adjusts Airliner Order

Drops 12 Airbus Airliners Worth $1.08 Billion

United Continental Holdings has reportedly changed its plans to buy six A319s and six A320s from Airbus, saying the airplanes are no longer needed. The cancellation means a $1.08 billion hit to the European planemaker.

Bloomberg reports that Unites spokesman Christen David said in an email that the company is "continually evaluating our fleet needs and making adjustments to our order book as appropriate." He declined to elaborate further.

He did say the orders were canceled in December. The airline currently has 152 of the A319 and A320 models, which United Continental Holdings said in November would be upgraded with new seats, larger overhead bins, and other amenities such as Wi-Fi in the cabins and realizing a $3 billion savings over buying new airplanes.

The airline ordered 150 Boeing 737s, including 100 737 MAX-9 airplanes, in July of 2012. That order remains unchanged.

FMI. www.unitedcontinentalholdings.com

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