NEW YORK- United Airlines (UA) CEO Scott Kirby has acknowledged the airline’s contemplation of a potential order for Airbus A321neos as a replacement for previously designated Boeing 737 MAX 10s, the certification of which is currently uncertain.
Speaking at the JP Morgan Industrials Conference on March 12, Kirby expressed the possibility of transitioning to A321neos, contingent on reaching a favorable economic deal.
United A321neo Order
The consideration for A321neos arises from delays in the certification of the 737 MAX 10, along with production and quality challenges faced by Boeing.
Kirby emphasizes that the issues with Boeing extend beyond a short-term inconvenience, characterizing them as a two-decade-long concern rather than a mere 12-month problem.
According to Cirium fleets data, the airline currently operates six A321neos with an additional 174 on order. It also has outstanding orders for nearly 350 Boeing 737 Max aircraft, including a substantial number of Max 10s.
United’s agreements with Boeing stipulate the delivery of 80 737 Max 10s in the current year, 71 in 2025, and 126 in the subsequent years until 2033. However, due to the probable delay in certifying the largest variant of Boeing’s next-generation narrowbodies until 2025, United has recently excluded these aircraft from its fleet plan.
United has taken the step of requesting Boeing to halt the production of Max 10s on their behalf and instead manufacture Max 9s.
CEO Scott Kirby explains, “If and when the Max 10 gets certified, we’ll convert them back to Max 10s.” He firmly states that the Max 10 is not part of their plans until it receives the necessary certification.
100 Fewer Deliveries
The carrier based in Chicago anticipates receiving more than 100 fewer Boeing aircraft deliveries in 2024 than initially agreed upon in the contract.
In a regulatory filing on February 29, United stated that it now expects Boeing to deliver 63 aircraft in 2024, a significant reduction from the earlier projection of 165.
Scott Kirby, United’s CEO, expressed optimism regarding Boeing’s approach, stating, “I am encouraged by the developments at Boeing. I believe they have acknowledged the need for substantial changes. It’s a bit of a cliché, but they need to proceed cautiously to accelerate progress. This means that deliveries this year will fall significantly short of their original expectations.”
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