United Airlines ordered 200 Boeing planes, two models are problematic
by FARUK IMAMOVIC | VIEW 417
United Airlines has made a significant order of at least 200 planes from Boeing, despite the two troubled models that the company currently has in its lineup: the 737 Max and the 787 Dreamliner. This decision is a clear sign of confidence in Boeing, which has suffered millions of dollars in financial losses due to the ongoing problems with these two planes.
The Federal Aviation Administration (FAA) grounded the 737 Max in March 2019 following two deadly crashes that killed a total of 346 people, and the plane remained grounded for a period of 20 months. The 787 Dreamliner was not grounded, but the FAA did halt deliveries of the plane for around a year due to quality issues.
Despite these challenges, Boeing has been losing the battle to European rival Airbus when it comes to securing new orders, particularly for single-aisle planes like the 737 Max. The situation is somewhat better when it comes to wide-body aircraft, but even there, there have been problems due to the delay of the new 777X model and the suspension of deliveries of the 787.
The value of the deal between United Airlines and Boeing has not been disclosed, but it is estimated to be worth more than $37 billion. Despite the deep discounts that are typical in such orders, the deal will earn Boeing the billions of dollars that it needs to stay afloat.
Boeing is the preferred aircraft of United Airlines
“The Boeing team is honored by United’s trust in our family of airplanes to connect people and transport cargo around the world for decades to come,” said Stan Deal, CEO of Boeing’s commercial aircraft division.
United Airlines has ordered 100 examples of the twin-aisle 787 Dreamliner, with the option to purchase an additional 100 planes, making it the largest order of wide-body aircraft in the history of any US airline. The 787 Dreamliner is primarily used for long-haul transoceanic routes, and this order is a clear indication that United believes that demand for intercontinental travel will continue to grow, despite the fact that it has not yet fully recovered from the effects of the COVID-19 pandemic.
Some countries, such as China, still have strict restrictions on entry, which has caused some travelers to hesitate when it comes to traveling abroad.