United Airlines Holdings Inc. is in advanced talks for large narrow-body aircraft orders to include at least 100. The Boeing Co. 737 Max is part of a broader fleet of improvements, according to people close to the matter.
Chicago-based airlines see an opportunity to upgrade their fleet and are studying several new, fuel-efficient aircraft at a time when Boeing and Airbus SE is hungry for a deal. And the demand for leisure travel is soaring in the US. People who asked not to be identified as such conversations are confidential.
Boeing̵7;s order could include 150 Max, two people said.
The talks come as Boeing seeks to boost sales of Max following two. The fatal accident led to a long global standstill that started late last year and is still present in some places. including China’s major growth markets Mass orders from United will boost US Titan as it tries to shake off the impact of the epidemic on businesses
To attract orders for the Max, Boeing has offered some customers discounts. Reduce prepayment and other incentives that may not be available once global air traffic returns to more normal levels. one of them said
“We currently have no agreements with Boeing or Airbus to purchase new aircraft. and does not comment on speculative aircraft orders,” United spokeswoman Leslie Scott said. “Managing the pandemic crisis and going into planning for our bright future,” she said.
A Boeing spokesman said the company did not comment on conversations with customers.
The deal will extend an order for the Max 25 single-aisle aircraft United announced in March. It could also help United retire its oldest single-aisle Boeing 757. Many of them date back to the mid-1990s and burn more fuel than the next generation of aircraft.
United has 72 of the 757s, including 21 757-300s, which are slightly longer models that Continental Airlines acquired from 2001 to 2004. According to Cirium, United has storage for 33 757s, mostly 757-200 models.
This airline flies the 757 to domestic hubs and Hawaii. Along with some transatlantic routes from the east coast, United plans to move those routes to the long-haul Airbus model, placing an order for 50 A321XLRs in December 2019, with deliveries beginning in 2024.
Other big customers such as Southwest Airlines Company Ryanair Holdings Plc and Alaska Airlines Inc. has stocked up on Max jets as Boeing seeks to restore confidence in its biggest seller. Manufacturers are looking to clear the undelivered 737 and 787 from inventory. while filling the delivery lanes as they begin to expedite work in their factories.
Southwest said on Tuesday it had reached an agreement to accept 34 more Boeing 737s, the smallest Boeing 737, next year, in addition to the 100 Max ordered in March. Spend $1.5 billion on planes next year. That’s about $800 million more than previously planned, the airline said in its filing.
Progress in China remains elusive. Complicated by protracted trade disruptions between the Asian economic giants and the United States. China was the first country to terminate Max more than two years ago after a collision in Ethiopia. still not stop banning
Boeing Chief Executive Dave Calhoun said earlier this month that China would be responsible for a A quarter of jet sales expected to grow over the next decade as the pandemic dwindles. But tighter ties between Washington and Beijing could threaten Max’s return.
“It will create real problems for us in the next couple of years. If we cannot dissolve some of the trade structures,” he said.
(Updated with more details about Boeing’s location in China.)