United Airlines is reportedly on the verge of finalizing a deal to acquire over thirty Airbus A321neo jets from aircraft leasing companies, in a move to substitute Boeing Co. 737 Max 10 orders that have been significantly delayed.
The discussions, aimed at securing aircraft deliveries between 2025 and 2027, are in advanced stages, although the involved parties have chosen to remain anonymous due to the confidentiality of the talks.
This development was initially hinted at by Bloomberg News in January, noting Airbus SE’s efforts to allocate A321 production slots for United.
The delay in obtaining certification for Boeing’s 737 Max 10 has posed challenges to United’s expansion plans, as the airline was positioned to be a leading customer for the largest variant of the 737.
Switching some orders to Airbus presents a notable opportunity for the European manufacturer to gain ground over Boeing, which has faced turmoil following a significant incident involving a 737 Max 9 in early January.
Market Constraints Highlight Challenges in Expanding Aircraft Capacity
United has refrained from commenting on the potential Airbus agreement. The acquisition would signify a victory for Airbus, though it also underscores the challenges of increasing production capacity in a demanding market. Both Airbus and Boeing have reported their production schedules are fully booked for the foreseeable future, following a surge in orders for single-aisle jets by airlines aiming to modernize their fleets with more fuel-efficient aircraft.
The certification process for the Max 10 continues to be delayed as regulatory scrutiny intensifies, particularly in the wake of recent incidents and ongoing assessments of Boeing’s quality control measures. This has led to Boeing being directed to limit its 737 jet production, a significant setback given its popularity.
Economic Prudence Guides United's Approach to Fleet Diversification
United’s CEO, Scott Kirby, acknowledged the airline’s interest in acquiring A321s but emphasized a cautious approach to not overspend solely to achieve growth targets. Kirby indicated that United is likely to incorporate both Max 9s and A321s into its fleet as replacements for the Max 10s, contingent upon favorable economic terms for the deals.
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