United A321neo test flight scaled
Today, news emerged that SMBC is the lessor for 20 A321neos ordered by United Airlines in April this year. The aircraft are from SMBC’s earlier order, with deliveries slated from 206 to 2027. This deal accounts for some of the 35 A321neos United said it was planning to lease.
United Airlines has a direct order with Airbus for 115 A321neos and currently has 15 in service. The airline also ordered 50 A321XLR.
United Airlines and Airbus
United’s position with Airbus is tortured. United has 176 Airbus in its fleet of 972. This 18% foothold is nothing like what we see at American or Delta. Moreover, there’s an old, unfilled United A350 order. That order does not endear United to Airbus. Scott Kirby’s conversation with Airbus over the need for A321neos must have been interesting. He discussed the need for a third choice regarding the duopoly a week ago.
United’s Boeing Proclivity
United is a child of the original Boeing Company, so its proclivity towards Boeing runs deep. Too deep, though.
With the MAX 10 program sliding to the right, United was forced to return to Airbus for the only solution in that segment. United has 167 MAX 10s on order, which underscores United’s commitment to the large single-aisle segment. Upsizing is a thing among the big three US airlines. Even Southwest has upsized, with the 800NG and MAX 8 accounting for more than 50% of its fleet.
United still has to secure another 20 A321neos of the 35 it said it wants to lease. Fortunately for United, market conditions are moving in its favor. While the A321neo is the market’s most in-demand model, several operators—Jetblue, Frontier, and Spirit — have started delaying deliveries as traffic growth softens.
United can exploit this opportunity. The main challenge is that lessors moved quickly to grab delivery slots. Nevertheless, lessors will line up to make United a good offer because it offers a lower risk in a risky business. The A321neo might be doing well, but its operator base is unstable. Another big A321neo operator is now under the spotlight.
Views: 137
