Airbus Eyes United Deal: Initiates Talks to Repurchase Aircraft Slots

Airbus is actively seeking to secure delivery slots for its A321neo in an effort to win over United Airlines, a key Boeing customer. The European aircraft manufacturer is reaching out to leasing firms and airlines to repurchase slots for the popular A321neo, aligning with United’s reservations about Boeing’s 737 MAX 10 due to delayed deliveries.

United Airlines, originally the launch customer for the Boeing 737 MAX 10 with an order for 277 aircraft, is exploring options to potentially exit its agreement with Boeing. The airline’s CEO, Scott Kirby, expressed concerns about the Max 10’s delayed schedule and dropped it from fleet plans, stating that Boeing would not meet contractual deliveries on many of those airplanes.

While it’s uncommon for an airline to cancel an order, United’s review of options opens the door for Airbus to secure a marquee order. Airbus’s initiative to repurchase delivery slots from various sources reflects a strategic move to provide an alternative to United Airlines.

Convincing United, one of the world’s largest airlines and a staunch Boeing customer, to switch to Airbus would be a notable triumph for the European planemaker. However, the process is not straightforward, considering United’s existing commitment to Boeing and the challenges associated with order cancellations and delays.

United’s concerns about Boeing’s delivery delays, with initial deliveries potentially postponed by up to five years, provide Airbus with a chance to offer a compelling alternative. However, the process may not be straightforward, as airline orders are typically binding, and United might negotiate better terms with Boeing rather than outright canceling the order.

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