Las Vegas-based airline to buy 20 Boeing 7E7-8s and 27 737-800s

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Las Vegas-based airline to buy 20 Boeing 7E7-8s and 27 737-800s =



The Associated Press

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SEATTLE =97 Primaris Airlines Inc. has announced plans to buy 20 Boeing 7=
E7-8 Dreamliners and 20 737-800s, a deal worth $3.8 billion at list price=
s, the new low-cost business carrier and The Boeing Co. announced today.
According to a joint news release, Primaris, based in Las Vegas, also agr=
eed to take options for 25 additional 737-800s and 15 7E7-8s, Boeing's ne=
west model, which is scheduled to go into production in 2006. Primaris pl=
ans to outfit the 737s with 94 seats and the 7E7s with about 150 seats, b=
oth in an all-business configuration.

The deal would be the biggest for the Dreamliner since a launch order of =
50 planes from All Nippon Airways in April. Primaris also is the first U.=
S. airline to say it will buy the plane.

Aerospace analyst Paul Nisbet of JSA Research said it wasn't surprising t=
hat the first U.S. order is coming from a discount carrier, since many of=
 the traditional U.S. airlines are in such bad financial shape.

"The legacy airlines are certainly not anywhere near capable of paying fo=
r new aircraft =97 in fact they're shrinking their operations quite drast=
ically =97 so it does leave you with the discount airlines as your only c=
ustomers in the United States," he said.

According to the news release, Boeing, based in Chicago, and Primaris exp=
ect to complete contract negotiations by the end of the year. Primaris is=
 planning to begin service focusing on business travel on domestic routes=
, like Los Angeles, New York, San Francisco and Chicago, next year and on=
 international routes in 2006.

The first 20 737s are for delivery between 2007 and 2010 and the 7E7s bet=
ween 2010 and 2013. The 737s are to be equipped with CFM56-7B engines and=
 an engine choice for the 7E7s will be made over the next month, Primaris=
 said.

Battling to regain world supremacy in commercial jet manufacturing from A=
irbus, Boeing executives have forecast 200 orders for the new 7E7 this ye=
ar.

Boeing has logged 52 firm orders for the 7E7, including the 50-plane laun=
ch order from All Nippon Airways. Besides Primaris, it is in negotiations=
 to sell 10 more airplanes to two air charter carriers, Blue Panorama of =
Italy and First Choice Airways of the United Kingdom.

Because of the airlines' woes, Nisbet said he doesn't expect Boeing to me=
et the 200-plane goal. Also, he said negotiations appear to be taking lon=
ger than expected with some carriers, perhaps because Airbus is quietly p=
itching a new model that would compete more closely with the 7E7. Airbus =
officials have declined to confirm or deny they are considering a new mod=
el.

Airlines typically receive substantial discounts from list prices on larg=
e orders, especially for new models when the manufacturer is eager to sho=
w demand quickly. =

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"Primaris is the first low-cost carrier to select the 7E7 Dreamliner. Its=
 decision validates the 7E7 Dreamliner as a catalyst for new business mod=
els," said Michael B. Bair, head of the 7E7 program.

Another customer for the new twin-engine plane is Air New Zealand, a long=
-haul airline.

Primaris, newly certified as a commercial airline, currently flies Boeing=
 757s in charter service. The chairman of the company is Jake Garn, a for=
mer U.S. senator from Utah who once flew aboard the Space Shuttle.

Shares in Boeing were up 65 cents to $49.61 in mid-afternoon trading on t=
he New York Stock Exchange.


Roger
EWROPS

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