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United s big order reveals two major insights about the airline and the aviation industry
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United Airlines is overhauling its fleet with the biggest jetliner order in company history and an ambitious upgrade for its aircraft cabins, bolstering a push to appeal to more travelers willing to pay for pampering.
The airline agreed to buy 200 Boeing 737 Max jets and 70 Airbus A321neo planes, a deal valued at about $15 billion based on estimates by aircraft appraiser Ascend by Cirium. Those planes and other United single-aisle jets will get a revamped cabin with seat-back screens and larger overhead bins, according to a company statement Tuesday.
The plans signal the airline s intention to step up competition with Delta Air Lines and American Airlines for premium-seat customers, who demand more creature comforts and typically generate an outsize portion of industry profits. United will also use the new planes to reduce its use of smaller regional jets amid an anticipated rebound in corporate demand, which is still stuck at less than half th
United Airlines is making one of the largest orders ever for commercial airplanes in an aggressive bet that air travel will rebound strongly from the pandemic.
United said Tuesday that it will buy 200 Boeing Max jets and 70 planes from Europe s Airbus so that it can replace many of its smallest planes and some of its oldest and have room to grow its fleet.
It s the biggest order in United s history and the biggest by any U.S. carrier since American Airlines ordered 460 Boeing and Airbus jets in 2011.
At list prices, the deals would be worth more than $30 billion, although airlines routinely get deep discounts. Figures from Ascend by Cirium, which tracks aircraft values, would put the deal around $15 billion. United declined to disclose financial terms.
United Airlines confirms 270 Boeing and Airbus jet order
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United Airlines confirmed its largest ever order for Boeing and Airbus jets on Tuesday, lining up 270 planes worth more than $30 billion at list prices as the U.S. giant pursues post-pandemic domestic growth.
The 200 Boeing 737 MAX and 70 Airbus A321neo jets will replace smaller mainline planes and at least 200 regional jets between 2022 and 2026, the Chicago-based airline said.
United is the most exposed U.S. airline to international travel, which suffered heavily during the coronavirus pandemic and is rebounding more slowly than domestic travel.
America’s third largest airline by revenue will be able to boost the number of seats across its domestic network, which lags major rivals, by almost 30% and get better use out of hubs with the fleet shake-up.
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