bigfatdaddy

United Airlines May Announce The Largest Aircraft Order Ever, Sources Say

Ted Reed
Senior Contributor
Aerospace & Defense
New book: Kenny Riley & Black Union Labor Power in Port of Charleston
Follow

A United Airlines Boeing 737 Max is pictured at the Boeing Factory in Renton, Washington in November ... [+] AFP VIA GETTY IMAGES
United Airlines plans to announce a large order for aircraft next week, perhaps the largest ever.

The carrier has scheduled an investor presentation for Tuesday morning, saying it will provide an update on its strategy.

The order is likely to be the largest aircraft ever, two industry sources say, although they were unable to clarify whether that would be by value or number of aircraft.

Reports that the carrier will order new aircraft have been widespread.

Bloomberg, quoting sources, reported June 10 that United could order 100 Boeing 737 Max 8 jets. Subsequently, CNBC reported, quoting sources, that the carrier was in talks to buy around 200 single-aisle jets in a multibillion-dollar deal involving both the Airbus A321 and the Boeing 737 Max.

PROMOTED


The largest aircraft orders in history include American’s 2011 purchase of 460 narrowbody jets: 200 Boeing 737s and 260 Airbus A321s.

The deal was valued at $38 billion list price; typically, list prices are cut by about half in big aircraft deals. In this deal, Boeing agreed to revamp the 737 with new engines, leading to the creation of Max and the subsequent safety fiasco.

Of the 460 aircraft it ordered, American has taken delivery of 336, the airline said Wednesday. Remaining to be delivered are 59 Boeing 737 Max, 35 Airbus A321neos and 30 Airbus A321 XLRs.

No U.S. carriers have placed larger orders since 2011.

FltCtrlNoDsptch

What’s the language to unlock more large RJs? Something about a new narrow body type?

I’d expect something to allow for more scope, and then have Mesa fly them for dirt cheap.

guppie

If only...... United is currently capped on 70/76 seat RJs unless and until they buy and we fly a "new small narrowbody aircraft."

1-L-25 “New Small Narrowbody Aircraft” means a CS100, E190 or E195 aircraft, provided that such aircraft is neither in the Company Fleet as of the date of signing of this Agreement nor acquired through merger or acquisition of another air carrier.

Larry in TN

The New Small NarrowBody (NSNB) that guppie mentioned. Only the CS100 (now A220-100), E190, or E195 qualifies.

If they put 88 NSNB on the line flown by UAL pilots they can have 70 additional 76-seat aircraft at Express. Fewer than 88 NSNB and there's a ratio for how many 76-seat UX aircraft they can add.

The 737-7 has not been mentioned in the reports and rumors as additional MAX orders and the 737-700s are the oldest of the 737s. They could do 88 A220-100s for scope then additional A220-300s for 737-700 replacement/expansion of that gauge and to increase the average seat-count on the fleet an appease the accountants. I think that's a good rumor. Let's start it!

Chuck D

Or we could stick with a big 737-7 order for fleet commonality/versatility and not unlock that 76 seat scope. I think that's a better rumor personally but I don't count the beans.

idlethrust

70 more rj’s at Express? God help us

Larry in TN

I think they'd have to get rid of some 50-seaters, too, but I don't know the amount.

It's in the contract. They can use it, or not, at their option. If they ever do, I think it'll have to include a commitment to the A220-300 as a 737-700 and A319 replacement to get the numbers where they'd want them.

fadec

Why the white paint? It looks nice now but... Wouldn't it be better to paint them primer green?

Hedley

There is a ratio of 50 seaters that have to leave for every additional 70/76 seater gained from a SNB. From what I remember, if UAX got the full allotment of 70/76 seaters (about 70 planes), they would have to park around 250 of the 50 seat jets. If given the max allotment of big rj’s, their available block hours also take a big hit. It reduces down from the current 120% to something like 65%. I wouldn’t hold my breath for additional rj’s coming from a NSNB. We’re going to kick the A350 can down the road for a decade before we ever see one, if we see one. Ordered and delivered are two different things.

CleCapt

Just a few observations.

Ted needs to shave.

“Largest order EVER”.

Not even close. How could 200 planes be a bigger order than 460 planes by AA in 2011.

Given those 2 things, I don’t put much weight in the rest of the article.

I see a big order of unwanted Max planes for a good price and 321’s to replace 757. Probably a large percentage of options in the bus.

We will know Tuesday.