Customers spoke and United Airlines listened. Customers have overwhelmingly ordered more flights on the Boeing 737 MAX, and as a result, United has not only increased its order for the 737 MAX, but has also moved forward on the delivery schedule, so that more passengers can enjoy these planes sooner.
Okay, so maybe that’s not exactly the motivation for this ad. 😉
United asks for another 737 MAXs, advances the schedule
United Airlines has just increased its firm commitment to the Boeing 737 MAX from 163 planes to 188 planes. Thereby:
- United Airlines has ordered an additional 25 Boeing 737 MAXs, to be delivered in 2023
- Not only that, but United Airlines has advanced the delivery schedule for existing 737 MAX orders – five additional 737 MAXs will be delivered in 2021 (for a total of 21 to be delivered this year), and 40 737 MAXs will be delivered in 2022, in addition to the 127 737 MAXs that will come in 2023 and later
United Airlines has ordered the 737 MAX 9 and 737 MAX 10, although we do not know the type breakdown of additional orders for the 737 MAX. I think the orders that were advanced are for the 737 MAX 9, since the Boeing 737 MAX 10 program has been postponed to 2023.
United may eventually use some of its 737 MAX 10 aircraft for premium transcon flights, in which case these planes would receive flat beds.
United has some 737 MAX 10 ordered
This is not surprising, but it is kind of ironic
The 737 MAX was finally recertified by the United States Federal Aviation Administration (FAA), so the plane is back in the United States. Presumably, Boeing is offering any airline a great deal if it orders 737 MAXs or receives them earlier:
- Not only have many airlines and consumers lost confidence in the plane, but airlines are also trying to delay aircraft delivery as much as possible due to reduced travel demand
- Several airlines have closed their doors or canceled their orders for the 737 MAX, which means that there are some planes ready to depart; in addition, the Chinese authorities have not yet approved the 737 MAX, so Boeing has a surplus of these planes
- In general, Boeing likes advertising with airlines requesting another 737 MAXs, hoping to create more demand among other airlines over time
But it also hits the irony of that, on some levels:
- United Airlines has just received billions of dollars in taxpayer support, and even if the airline is getting a great deal on favorable terms, you need to ask how exactly the airline can pay for it right now; all of this happens when the airline asks for a third round of government support
- Unlike American and Delta, United has not announced plans to retire a large portion of its fleet; while the airline will eventually have to renew its fleet, ironically the carrier’s fleet could be significantly larger in one year than it is now
Will United retire some of its existing 737s?
Result
United Airlines not only increased its order for 737 MAX, but also advanced delivery of dozens of these planes, with the airline receiving an additional 737 MAX in 2021 and 2022.
I’m curious to see what the 737 MAX’s situation means for future plans for United’s narrow-body fleet. Presumably, the airline will end up retiring the current generation 737s in favor of the MAXs, but immediate plans have not yet been announced for that.
What do you think of the changes to the order and schedule for United’s Boeing 737 MAX?