google-site-verification=4ughixIuTRnLcSaPAOoQudexoumFVsL4qi6UJDvlUc8 100 Dreamliners are among the large Boeing orders placed by United Airlines. - Trending News

100 Dreamliners are among the large Boeing orders placed by United Airlines.

Chicago/North Charleston, Dec. 13 (Reuters) – As it strives for post-pandemic growth and replaces older, less efficient aircraft, United Airlines (UAL.O) announced Tuesday that it is ordering 100 Boeing (BA.N) 787 Dreamliners and 100 737 MAXs.

After political and production challenges for the two jets this year, the Chicago-based airline’s order for 200 aeroplanes, valued at approximately $43 billion at list prices, is a significant win for the American aircraft manufacturer.

By exercising options to buy 44 737 MAX aircraft for delivery between 2024 and 2026 and 56 additional MAX aircraft for delivery between 2027 and 2028, United said it will be able to fulfil its recent order for 100 737 MAX aircraft. Currently, United has 443 MAXs on order in total.

United’s significant investment in the 787 is a reflection of forecasts for ongoing growth in long-haul travel demand as well as a need to replace ageing aircraft.

However, the hefty aircraft deal has raised questions about United’s balance sheet. Over the following two years, it is anticipated to require $20 billion in capital investments.

According to analysts at Jefferies, United would likely spend $50 billion on capital expenditures via the delivery of 700 new aircraft.

There is no question that this decision was necessary, but increased leverage presents a significant obstacle moving forward, they stated in a note.

However, the Chicago-based carrier stated in a regulatory filing that it is “dedicated” to providing a sound balance sheet and its debt reduction plan.

In midday trading, its shares were down 5.5% at $41.78 while Boeing shares were up 0.2%.Additionally, United indicated that airline would push back its previously announced order for 45 Airbus (AIR.PA) A350 aircraft until “at the earliest” 2030.

This order, an extended version of one that dates back to 2009, is reportedly in limbo after many delays and may not go through.”The ideal moment for 350 vs (787) talk is when we’re replacing the bulk of the 777s, which really doesn’t happen until the end of the decade,” United CEO Scott Kirby told reporters.

The company’s current 787 fleet, according to Kirby, was a critical consideration in choosing between Boeing and Airbus for its significant widebody order.”Introducing a new fleet type slows that down considerably when we’re trying to bring on 2,500 pilots a year and build the airline,” Kirby added.2,400 pilots were among the 15,000 new personnel employed by United in 2022, and the company expects to add 15,000 more people in 2023, including 2,500 more pilots.

It anticipates receiving delivery of 787s between 2024 and 2032, and it has a choice of the 787-8, 9 or 10 variants. By 2030, United will replace its entire 767 fleet with 787s and some 777s, reducing carbon emissions per seat on the new aircraft by around 25%.

The order, according to United’s Chief Commercial Officer Andrew Nocella, will enable the airline to replace ageing aircraft with newer, more fuel-efficient ones that have more premium seats, can carry more cargo, and travel at a faster speed. The plan, according to Nocella, “we generate more money.”The airline intends to highlight the purchase at a gathering on Tuesday with Stan Deal, CEO of Boeing Commercial Airplanes, at the Boeing factory in South Carolina.This year, difficulties have plagued both the MAX and the 787.

After production issues led Boeing to halt 787 deliveries in May 2021, the company ultimately resumed deliveries in August. The Federal Aviation Administration granted approval to Boeing’s inspection and retrofit plan in July, and each aircraft is now being inspected prior to delivery in order to meet certification standards.

The order, according to United’s Chief Commercial Officer Andrew Nocella, will enable the airline to replace ageing aircraft with newer, more fuel-efficient ones that have more premium seats, can carry more cargo, and travel at a faster speed. The plan, according to Nocella, “we generate more money.”

The airline intends to highlight the purchase at a gathering on Tuesday with Stan Deal, CEO of Boeing Commercial Airplanes, at the Boeing factory in South Carolina.This year, difficulties have plagued both the MAX and the 787.

After production issues led Boeing to halt 787 deliveries in May 2021, the company ultimately resumed deliveries in August. The Federal Aviation Administration granted approval to Boeing’s inspection and retrofit plan in July, and each aircraft is now being inspected prior to delivery in order to meet certification standards.

Boeing experienced a blow last week when Congress decided against extending a deadline that would have imposed stricter safety criteria for the MAX 7 and MAX 10 models. According to United, the MAX 10 will make up 80 of the 100 new MAX aircraft it is ordering.

Since Congress imposed the deadline in 2020 following the deaths of 346 people in two 737 MAX crashes, Boeing has been pleading with lawmakers to extend it. This lobbying has lasted months.Regarding the extension, Kirby stated that he was “pretty sure it’s going to get done in the next Congress” because “it was the right safety outcome,” but he also emphasised that if lawmakers were not on board, United could switch to other MAX variants or purchase more Airbus aircraft.

As part of its “United Next” development strategy, United announced its largest-ever order of 270 Boeing and Airbus aircraft in June 2021, including 200 Boeing 737 MAX and 70 Airbus A321neo aircraft.United claimed that the A321neo order will not change.

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