United Airlines Edging Towards Airbus Lease Agreement, Sources Reveal

With the backdrop of increasing uncertainties regarding the certification timeline of the Boeing 737 MAX 10 aircraft.

Sources reveal that United Airlines Holdings Inc. is nearing the finalization of a groundbreaking deal to lease approximately thirty-six or more cutting-edge Airbus A321neo jets from aircraft lessors. This strategic move comes in response to the significant setbacks faced by the airline in its Boeing Co. 737 Max 10 orders, which are now projected to be at least five years behind schedule.

Deliveries of these cutting-edge aircraft are expected to take place between 2025 and 2027, according to insiders with insight into the situation. Negotiations are currently at their completion.

Because sources have chosen to remain anonymous, these discussions are still cloaked in mystery. In an attempt to lure United Airlines, Airbus SE was reportedly actively seeking A321 production slots, according to Bloomberg’s original disclosure from January.

United’s growth aspirations have faced significant challenges due to the prolonged delays in the certification of Boeing’s 737 Max 10 aircraft. United, which had been positioned as the first significant customer for the Max 10, is now considering shifting some of its orders to Airbus as a practical measure.

This change in the works might present Airbus with a unique chance to outperform its main competitor. The timescale for clearance has been further confused by recent concerns over the certification of Boeing’s 737 MAX series, which were highlighted by an incident involving an Alaska Airlines 737 MAX 9 in mid-air in January.

Prior to placing its Max 10 purchase, United Airlines looked into the idea of purchasing A321neo aircraft from air bus company. However, logistical challenges exist because Airbus’s order backlog is already extended to 2030. CEO of United, Scott Kirby, has expressed the airline’s strong desire to purchase A321 aircraft, but he has also stressed how critical it is to obtain advantageous financial conditions in any deal.