United Continental Studying Replacements for Fleet's Boeing 757s

United Continental Holdings Inc. has started evaluations to replace its fleet's Boeing Co. 757s with an upgraded Airbus Group NV single-aisle jetliner or a possible new model from Boeing, a senior executive at the carrier said Tuesday.

United still operates more than 90 Boeing 757s, and the potential replacement of a jet the U.S. aerospace firm stopped delivering in 2005 has been closely watched in airline and aerospace industry circles.

Ron Baur, United's vice president of fleet, said the airline was looking at both the A321LR now being developed by Airbus and an all-new Boeing jet that the U.S. company is sketching out.

The preferences of customers such as United Airlines are expected to weigh heavily on development efforts by Boeing.

Mr. Baur told an industry conference that its evaluations are at the conceptual stage as its 757s are comparatively young, still flying regularly on extended routes across the Atlantic that don't require a larger twin-aisle jetliner. The airline's older workhorse 757s flying domestically are being quickly retired and replaced with new Boeing single-aisle jets.

Airbus, late last year, began offering a longer-range version of its 180- to 240-seat A321 jetliner -- with new fuel tanks and the ability to carry a roughly four additional metric tons of passengers and cargo -- which is scheduled be available in 2019. The European plane maker completed a deal with lessor Air Lease Corp. for 30 of the A321LR aircraft Monday.

"When we look at the A321LR, it looks like a pretty decent airplane," Mr. Baur said at the International Society of Transport Aircraft Trading Americas conference.

"But since we have the luxury of time in terms of waiting to see what Boeing's going to do in the middle of the market airplane, we're in no rush to make a decision on that."

John Leahy, Airbus's chief operating officer - customers, said he expects to be able to sell to airlines about 1,000 A321LRs, a figure Boeing disputes as it conducts its own evaluations about the potential market size for a new midsize jet.

Boeing is currently soliciting from airlines views on the capabilities of a conceptual jetliner sized between its single-aisle 737 and long-range twin-aisle 787 Dreamliner. Randy Tinseth, Boeing's marketing chief, said Monday that customers were indicating a preference for a jet larger than the discontinued 180-seat 757 that could fly as far as 4,800 nautical miles. It isn't said when such a plane might become available.

Extended range has been a preference of airlines such as United. Its 757s have to fight heavy winter headwinds crossing the Atlantic on the return to the U.S. from Europe causing frequent and expensive fuel stops.

Separately, Mr. Baur said falling oil prices have prompted the airline to keep older twin-aisle Boeing 767 aircraft in its fleet. The less fuel-efficient jets have been outfitted with new interiors and were originally going to quickly exit United's operations in favor of new Boeing 787 Dreamliners.

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Photo:Ton Jochems - Lvegas