United Orders 50 Jets From Boeing and Airbus
United Airlines has placed an order for 50 jets from Boeing and Airbus with a list value of nearly $10bn, in a move analysts say is a sign of a return to health for airline financing.
The order for 25 jets from each group is a boost for both aircraft makers during the worst aviation downturn since the one that followed the September 11 terrorist attacks in the US in 2001.
United said it ordered 25 of Boeing’s long-awaited 787 widebody jetliners and 25 of the Airbus A350. Delivery is expected between 2016 and 2019, around the same time the airline will retire Boeing 747 and 767 aircraft. At list prices the planes would be worth roughly $10 billion, with about $4 billion for Boeing’s 787-8 and about $6 billion for the Airbus plane.
The order comes just under four years after United emerged from bankruptcy protection, which it sought in 2002.However, analysts said the broader significance of the airline’s announcement on Tuesday was its statement about the health of the airline financing market.
United’s balance sheet is not as robust as that of some other airlines and yet it has been able to go out there and place a 50-aircraft wide-body order.
The order is particularly noteworthy for Airbus because it is the first time United has bought long-range wide-body jets from the European group.
This deal comes as a huge relief to Airbus, This is probably their worst year in terms of sales in many years.
Airplane manufacturers have been particularly hard hit by the global financial crisis, which has seen travel rates drop, particularly in developed markets such as the US. This in turn has driven down airline demand for new planes.
Airbus sold only 194 planes in the first 11 months of this year. The 14 aircraft it sold to Air New Zealand on the eve of the Dubai air show have yet to show up on their order book.
United Airlines is the number three US airline by traffic. The US stalwart emerged from a bankruptcy-court reorganisation in 2006 to turn itself into a market leader in capacity reduction in a crisis-hit travel market.
