CONTINENTAL Airlines is negotiating with Boeing and Airbus Industrie over the purchase of 40 long-range commercial aircraft worth as much as $2.5 billion, says the airline.

Continental expects to decide within two months whether to buy the Boeing 767-400 or 777, or, instead, purchase the Airbus A330-200. The carrier is aiming to retire its McDonnell Douglas DC-10-30s used for international flights.

Another US carrier, Northwest Airlines, is expected by mid-April to announce orders and options for up to 40 A330s worth as much as $4.2 billion. Northwest confirms that company officials are talking to Airbus about buying additional aircraft, but declines to comment on talks with Boeing.

Source: Flight International