United Airlines places $10 billion plane order (1/2 to Airbus)

Reuters ^ | December 8, 2009 | Kyle Peterson and Tim Hepher

[C19fan]

Taking advantage of down market prices, United Airlines said on Tuesday it placed a $10 billion-plus order for 50 wide-bodied jetliners divided between Airbus and Boeing Co, in a bid to slash fuel costs and emissions. United, a unit of UAL Corp, has letters of intent to order 25 of Boeing's 787 Dreamliners and the same number of A350 planes from its European rival Airbus, part of EADS, following a six-month contest. The carrier also has future purchase rights for 50 of each aircraft.

[C19fan]

From what I understand this is the first time United has ordered wide bodies aircraft from Airbus. As many aviation enthusiasts know, United was created by Boeing. I find it interesting they split the order when that must increase maintenance costs as opposed to flying just one type of plane as Southwest does. The only reason EDAS was able to develop the A350 was through Euro government subsidies.

[Da Coyote]

The Airbusses will be banned from high altitude flight in any sort of bad weather.

We all know what happens when they do fly up there.

[OrioleFan]

I still won’t fly United or United Express.

[Bookie1066]

Reminds me of the 707/DC-8 orders. They order both at the same time knowing the 707 would be delivered first and so they’d have jets to compete. Then a year later when the 8’s were delivered they went with mostly Douglas.

This time the 787’s will be ready first while the 350 is mostly a paper airplane to be delivered much later. Once they have the 350’s in the future could see the Boeings dumped by United.

[buzzer]

“The only reason EDAS was able to develop the A350 was through Euro government subsidies.”

The only reason Boeing was able to develop the B787 was through US government subsidies.
- 100% Tax cuts in WA,IL and KS for Boeing
- billions for defence toys that don’t work. ( Did the number of illegals decrease since Boeing built “the fence” ? I doubt it ! http://www.chicagotribune.com/news/chi-sun-boeing-border-tech-0927sep27,0,2613588.story)

[wolf78]

The only reason EDAS was able to develop the A350 was through Euro government subsidies.

Yes, but at the same time the logic behind outsourcing more than a third of the 787 program to Japan and another huge chunk to Italy was to get the maximum subsidies possible there.



It's a classic case of the pot calling the kettle black.

I find it interesting they split the order when that must increase maintenance costs as opposed to flying just one type of plane as Southwest does.

The 350 is somewhat larger (20-25% more seats, depending on the layout), and the stretched version eats into the 777 market, in fact it's a very attractive proposition as it's a 20 years younger and more fuel efficient design than the 777.

Commonality always has to be weight against operating costs / fuel burn, especially on the long haul. That's also why e.g. Lufthansa bought both the 747-8i AND the A380 -> best plane for the specific route.

[Zetman]

As many aviation enthusiasts know, United was created by Boeing.

Actually, from what I remember, both started out as seperate companies in the 1920's. UAL was created by a group of vennture capitalists from Chicago. Airines were the new, hot, up and coming thing at the time (the Dot Com's of their day), and there were not many in existence yet (well, not big one's anyway). The businessmen from Chicago bought three small existing airlines operating in California, Oregon, and Washington, and combined them into one airline (hence the name "United" Airlines).

Boeing was already making planes up in Seattle. However, they developed a very close relationship with United Airlines - designing and building planes to United's specifications. At some point in the late 20's or early 30's, the two companies decided to merge - because they were already so close anyway. Hence, United bought Boeing, and they became on company.

Next, in a move which foreshadowed the Bell Telephone breakup and all of Microsoft's problems many decades later, other airlines complained that by owning Boeing, United Airlines controlled to much of the airline/aircraft manufacturing market, and as such constitiuted a monopoly. They filed an antitrust lawsuit and won. United Airlines was forced to divest itself of Boeing, and return Boeing to being an independent company - a situation which remains to this day.

In short, there is nothing new under the sun. History keeps repeating itself.

[freepersup]

Yes... terminal velocity. Amazing that the inherent design flaw of the composite hinges remains the dirty little deadly secret that they are. Airbus crashes in New York City, 400 miles E by NE of Brazil, and near the Seychelles Islands come to mind. Are there others?