United seals agreement with Airbus for 25 aircraft

Posted March 10, 2010 at 12:36 p.m.

By Julie
Johnsson

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United Airlines has finalized an agreement with Airbus SAS to purchase 25 A350-900 XWB aircraft with an option to buy another 50 jets.

With the order, United wraps up its first major fleet overhaul since the early 1990s. The deal accounts for half of the $8-billion wide-body aircraft order that United unveiled in December after months of negotiations with rival plane-makers Airbus, which is based in France, and Chicago-based Boeing Co.


United, which is also headquartered in Chicago, plans to take delivery of the Airbus and Boeing aircraft from 2016 through 2019, as it retires its fleet of Boeing 747s and Boeing 767s.

But United is switching to a smaller plane on long-haul routes, a signal that it intends to keep tight control over capacity well into the next decade. The A350-900 seats 314 passengers, down from the 374 that United currently hauls in its jumbo jets.

Last month, the nation’s third-largest airline finalized terms to purchase 25 of Boeing Co.’s 787 Dreamliners with an option to buy another 50 planes.

The large number of options and late delivery dates give United flexibility to shift fleet plans if either the 787 or A350 is dogged by delays or falls short of expectations, analysts said.

Boeing’s 787 is in flight-testing but is running more than two years behind schedule. Airbus expects to assemble its first A350 next year and has scheduled first delivery for 2013.

United plans to shop for narrow-body planes this year and has indicated it plans to pit Boeing and Airbus against regional jet manufacturers Embraer and Bombardier, who seek to gain a foothold in the 130-seat aircraft market long dominated by the larger manufacturers.

 

One comment:

  1. greyhound44 March 11, 2010 at 5:54 a.m.

    Yet another reason to avoid UA!