United Airlines Orders a Large Number Of Boeing 787s

(CTN News) – As a result of robust demand for international travel, United Airlines on Tuesday announced that it had placed an order for 100 brand-new Boeing 787 Dream liners with options for an additional 100.

A huge order placed by an American carrier for this type of aircraft marks a victory for Boeing, which has targeted the middle of the decade as the period when it expects to get back to its pre-pandemic financial health following the 737 MAX scandal and other blows.

There is no doubt United’s ambitious 787 plan will pay off during a period of capacity constraints. This is according to United Chief Executive Scott Kirby, who announced the airline’s gigantic Boeing and Airbus order in June 2021 ahead of rivals.

According to Kirby, the airline has a unique opportunity to grow in a way that will be a major challenge for others in the future.

According to United Airlines, the jets are expected to be delivered between 2024 and 2032. This is a replacement for the 767 fleet that will be taken out of service by 2030 and replaced by the next-generation aircraft.

Comparatively to a jet that is being retired, the Dreamliner will reduce carbon emissions by 25 percent.

In their report, United executives did not provide an estimate as to how much the contracts could cost in total. However, they did forecast that the cost of capital expenditures in 2023 and 2024 would increase from $9 billion to $11 billion.

A United Airlines spokesperson said the airline also exercised its option to purchase an additional 44 737 MAX planes between 2024 and 2026. In addition, the airline ordered 56 more MAX jets for 2027 and 2028.

The 787 Dreamliner, which flies transatlantic routes as well as other international itineraries, has been Boeing’s other leading source of orders and deliveries after the 737 MAX. This has seen a significant increase in production.

The official from United Airlines said that beefing up its fleet of 787s made sense at a time when the carrier already flies the aircraft. This made it a smooth transition for pilots and allowing United Airlines to add capacity swiftly.

United’s officials still plan to take delivery of 45 Airbus aircraft by 2030, despite praising Airbus’ competitor widebody offering, the A350.

With this order from United, Boeing marks a victory for its 787. This has been slowed to a trickle while Boeing halted deliveries of its jets for more than a year in order to address problems associated with production.

Having received a green light from the Federal Aviation Administration, which has heavily scrutinized Boeing’s internal processes as a result of the 737 MAX incident, Boeing resumed 787 deliveries in August.

According to Michel Merluzeau, director of aerospace and defense analysis at AIR consultancy, Boeing has an opportunity here to ramp up production at Charleston. This could be done by using two production shifts.

As Boeing battled financial losses during the downturn in the market caused by Covid-19, the company consolidated manufacturing of the 787 in Charleston in an effort to increase efficiency. Production of the widebody jet was subsequently stopped in Washington state.

It was announced at Boeing’s investor day in November that the United Airlines company would restore its 787 production rate to 10 jets a month in the near future.

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