United is making a pitch to passengers at both ends of the plane — budget fliers and luxury passengers — as it attempts to boost profits. The airline announced Tuesday that it will sell lower "Basic Economy" fares that don't let buyers pick seats ahead of time and limit them to a single carry-on bag that fits under the seat. They'll be the last to board. The new fares will go on sale in January for flights starting after March, a spokeswoman said. United hopes the lower fares lure passengers who pick carriers like Spirit and Frontier on price. Delta already sells a similar, stripped-down ticket for several years, and American Airlines plans to follow. Airlines don't generally speak about pricing, but Delta's basic economy tickets have been roughly $10 to $30 cheaper — sometimes more — than regular coach tickets on domestic flights. Meanwhile, the airline plans to begin a new service called Polaris for premium passengers on international routes next month, and may expand it to domestic flights. United said it expects those and other changes, coupled with cost controls, will increase profit by $4.8b between now and 2020.<br/>
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Boeing shares fell Tuesday after United Continental said it will defer jetliner orders worth nearly $5b as part of a cost-saving drive. The airline's decision affects Boeing's 737 jet, one of its biggest moneymakers, and raised some fears that Boeing may not lift 737 production as planned and could miss financial targets. The world's biggest plane maker said United's move would have no impact on production. United said it will convert orders for 61 Boeing 737-700 planes due to be delivered in the next two years into the newer 737 MAX model, but that it was still deciding on which size MAX planes to order and when they would be delivered, creating uncertainty for Boeing investors. United also will convert orders for four 737-700s to larger 737-800s due for delivery in 2017. Boeing shares fell 1.8% in early trading on the New York Stock Exchange and were last down 1.6% at $147.56. United shares rose 3.4% to $65.08. "We don't know when are they (the MAXs) going to come but they are going to come as 737 MAX, most likely MAX 8 or 9s," United CFO Andrew Levy said. "The reason we are doing this primarily is because we just don't need these airplanes right now." Boeing said United's move would not alter its planned increases in 737 production rates and stressed it continues to have orders for more 737s than it can produce. Boeing will keep the 737-700s on its books until United finalizes the MAX order.<br/>
Lufthansa management board member Karl Ulrich Garnadt, responsible for the carrier's low cost unit Eurowings, will step down next year, a spokesman said on Tuesday. Garnadt has been at Lufthansa since 1979, recently heading the group's cargo arm and its German airlines division before taking on responsibility for Eurowings at board level this year. Garnadt turns 60 in January and he said he was stepping down because Lufthansa has a rule that board members must leave when they reach that age. "This rule of course applies to me too," he said. The departure comes as Eurowings expands rapidly, taking on planes from Air Berlin and integrating Brussels Airlines as part of plans to become Europe's third largest point-to-point carrier.<br/>