United Backs Out Of A Boeing Deal

Boeing is hoping this is its last measure of bad news for a while. On Apr. 7, United Airlines announced that it had annulled orders for 49 Boeing planes worth $2.7 billion. That will hurt Boeing, but not as much as it might have. United, Boeing's biggest customer, had also been pressing to defer taking delivery of the new 777, due in May, 1995, or to switch its order to a longer-range version of the plane. Boeing refused the request. It also insisted that if United doesn't reinstate the 49 cancellations by 2000, the airline will have to forfeit big deposits.