United Airlines has reportedly entered discussions with Airbus for additional A321neo jets, potentially compensating for the delays in Boeing’s 737-10 deliveries. This development, which could influence an existing order for larger A350s, emerges amid escalating concerns over the Boeing 737-10’s certification process, according to industry insiders.
United CEO Scott Kirby’s recent visit to Toulouse to engage with Airbus signifies a strategic pivot, particularly after a mid-air emergency involving an Alaska Airlines 737-9 raised further questions about the 737-10’s delayed certification. “United Airlines has been exploring alternatives to their Boeing 737-10 order with Airbus, but no definitive agreement has been reached yet,” a source familiar with the talks mentioned.
These preliminary negotiations, encompassing potential A321neo sales and the fate of United’s A350 order, are still in nascent stages, with no certainty of a finalized deal, as per sources.
Both Airbus and United Airlines have refrained from commenting on these discussions.
Kirby’s unannounced trip to Toulouse adds a new layer to Boeing’s ongoing challenges as the company works to assuage safety and production quality concerns while trying to secure its key orders.
United has not officially canceled its 277 Boeing 737-10 orders. Still, Kirby indicated last week that these jets had been excluded from United’s internal planning, casting doubt on future fleet composition at a time when Airbus’ production is already stretched.
Recent reports from Bloomberg News suggest that Airbus might be seeking to repurchase A321neo slots to craft a proposal should an opportunity with United arise. Additionally, trade publication Air Insight reported ongoing talks between Airbus and United.
Meanwhile, Ryanair, a staunch supporter of the Boeing 737-10, expressed readiness to take on any deliveries that U.S. carriers might abandon.
Any potential deal between United and Airbus would hinge on the limited availability of the highly sought-after A321neo and the intricacies of United’s existing contract with Boeing, expected to be a focal point of intense negotiations.
Kirby highlighted last week that while no 737-10s have been canceled, Boeing might not meet its contractual delivery obligations for many of these aircraft.
Boeing, currently addressing quality issues that may have contributed to the 737-9 door incident leading to a partial grounding, has not commented on these commercial discussions.
Boeing Commercial Airplanes CEO Stan Deal, in a recent staff letter, expressed deep regret over the disruptions and challenges faced by their customers. United has since resumed 737-9 flights.
Sources: AirGuide Business airguide.info, bing.com, reuters.com
