Copa Airlines To Buy 13 More Boeing 737 Planes For $1 Billion

   DOW JONES NEWSWIRES 
 

Copa Holdings SA's (CPA) Copa Airlines unit ordered 13 more of Boeing Co.'s (BA) next-generation 737-800 airplanes for about $1 billion, nearly doubling its original order.

The Panama-based airline said Thursday it now has 27 of the planes on firm order from Boeing. There are also options for an additional eight.

Although many U.S. airlines have been cutting back capacity to align with a decline in demand, Copa and some other international airlines have fared better because of fewer flights and less competition to begin with.

The planes, to be outfitted with modern, 787-style interiors, are expected to reduce fuel consumption through a combination of airframe and engine improvements.

Boeing, which has seen its credibility damaged by several delays in its 787 Dreamliner, said earlier this month the bulk of its second-quarter deliveries were the 737 planes. It has maintained production plans for the model despite cuts in other models.

Copa Airlines Chief Executive Pedro Heilbron said the 737s have been "a major factor" in Copa's success, providing it with operating and cost savings.

The deliveries of the 13 planes are scheduled to start in 2012.

Copa's class A shares were recently down 3.8% at $39.67, while Boeing's shares were up 0.8% at $41.69.

- By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; [e-mail]