United Airlines Holdings has ordered 25 new Boeing 737 Max aircraft to receive in 2023 and moved up the delivery of others as it prepares to replace ageing jets and meet post-pandemic demand growth, the company said on Monday.
US airlines have parked and retired aircraft as the coronavirus pandemic sapped travel but are beginning to position their business for a recovery as more vaccines are distributed across the country and globally.
"With a number of our aircraft nearing the end of their lifecycle and the growth opportunities that we know will exist in the Covid-19 recovery period, this agreement will help us to grow as demand returns," chief commercial officer Andrew Nocella said in a memo.
The move is a vote of confidence in Boeing after two fatal 737 Max crashes triggered a 20-month safety ban that US regulators lifted last November.
Shares in Boeing and United rose over 6 per cent.
In addition to the new Boeing order, United said it has moved up delivery of 40 previously ordered Max aircraft to 2022 and 5 to 2023, meaning it will have 94 new aircraft in its fleet over those two years.
Altogether, it has 188 orders for the more fuel-efficient, single-aisle Max.
The deal comes as United continues to push for a third round of government payroll relief for airlines. It sent about 9,200 furlough notices to employees last week that will take place in April without an extension of a current support package, a spokeswoman said.
After voluntary leaves and early retirements over the past year, United said its headcount totaled 74,400 at the end of 2020, down 22 per cent from 2019.
Its total aircraft financial commitments totaled about $24.3 billion as of February, 2021, it said in a regulatory filing.
United has 52 Boeing 777-200 wide-body aircraft which were grounded last week after an engine failure, prompting some potential scheduling headaches.
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
UAE currency: the story behind the money in your pockets
Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
