United Airlines places a mega order with Boeing: two hundred new aircraft

The American airline United Airlines has ordered 200 new aircraft from Boeing. Both companies announced this on Tuesday.

The billion-dollar order concerns one hundred aircraft of the 787 Dreamliner type and one hundred of the 737 MAX type. The Dreamliner is a larger aircraft for approximately 250 to 350 passengers for longer distances; the MAX is smaller (around two hundred passengers) and is used more for shorter journeys. United had already ordered 44 MAX aircraft; 57 new ones are now being added.

The two hundred devices together have a catalog value of 43 billion dollars (41 billion euros). However, airlines usually receive a substantial discount on the official price. United has also taken out an option on a further 100 Dreamliners.

The order for 100 Boeing 787 Dreamliners is the largest ever for the aircraft, which has had many production problems in recent years. For example, rejected parts would still have been used in the assembly.

Awaiting approval

It was not until August of this year that the American regulator Federal Aviation Authority (FAA) gave permission to deliver the aircraft again. KLM, for example, waited months for previously ordered Dreamliners.

The 737 MAX has also been grounded for a long time after two fatal accidents in Indonesia in 2018 and Ethiopia in 2019. Boeing is still waiting for the FAA to approve the design of two new versions of the MAX, the smaller MAX-7 and the larger MAX-10. If those approvals are not secured before the end of the year, Boeing will have to redesign the cockpits on both types. That will cost the aircraft manufacturer a lot of money. The Irish budget airline Ryanair has been waiting for the MAX-10 for a long time.

Also read this article: Why the Boeings went down

In any case, the mega order shows the confidence that United Airlines has in the recovery of aviation. Travelers want to fly again; and not only at short distance but also intercontinental. Also a sign of confidence: the German airline Lufthansa announced on Tuesday that it expects higher turnover than previously predicted. The Air France-KLM share also benefited from this forecast, which made a profit in Amsterdam.

Airbus order shifted again

United Airlines – with Delta Air Lines and American Airlines the top 3 in the United States – wants to grow strongly in the coming years. United has recruited 15,000 new employees this year, including 2,400 pilots. Next year, the company wants to employ a similar number of employees. For example, the company hopes to strengthen itself now that competition in the United States is growing from budget airlines such as Southwest Airlines and the soon to be merged JetBlue and Spirit.

At United, both the 787s and the 737 MAXs replace older aircraft that use a lot more fuel and, as a result, emit more carbon dioxide. According to Boeing, the new 787s are 20 percent more fuel efficient (and cleaner) than the aircraft they replace. For the 737 MAXs, that percentage is 25 percent.

United would also order 45 longer-haul aircraft from Airbus, Boeing’s European competitor. The order for the Airbus 350, which was already announced in 2009, has been postponed again. United has opted for Boeing 787 Dreamliners because these aircraft replace older Boeings. Pilots and cabin crew then need no (or less) training. Those who switch from Boeing to Airbus have to learn how to handle a completely new aircraft. We don’t have that time, United Airlines said on Tuesday.

Also read this article from 2019: Crisis at Boeing also affects American regulator

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