Rising Fuel Costs Are The Primary Reason For Fleet Replacements

The world's two largest planemakers are in a serious competition to sell as many as 150 airliners to the world's largest airline as United Continental looks to realize fuel savings and trim bottom-line costs.

That leaves Boeing and Airbus in a head-to-head matchup for the merged airlines' business for new, more fuel-efficient narrow-body jets, the workhorses of the carrier's fleets.

Boeing has fallen behind Airbus in sales in recent years, but just scored big with a record-setting order from Lion Air. The United Continental order could include as many as 130 single-aisle airplanes and be worth some $15 billion at today's prices, according to a report from Reuters.

A source close to the discussions who wished to remain anonymous said the odds of getting a decision from the airline on which jets it will order by the end of the year is about 50-50, though some analysts see the decision being pushed into 2012.

United split an order in 2009 for larger jets between the two companies. American Airlines just announce it was ordering single-aisle airliners from both planemakers as part of a fleet replacement strategy.

FMI:  www.unitedcontinentalholdings.com