“Long live the crisis! “, American airlines could cry. American Airlines, Delta Air Lines and United Airlines, the three major airlines across the Atlantic, have emerged stronger from the economic shock caused by the Covid-19 pandemic.
Proof of the renewed good health of American companies, they are buying planes with all their might. Most recently, United announced on Tuesday, October 3, a firm order for 110 aircraft from Airbus and Boeing with an option for 90 additional aircraft. The Chicago airline has placed an order for 50 long-haul 787 Dreamliners and 60 medium-haul A321neos. Purchases valued, list price, at nearly 40 billion euros (around 42 billion dollars).
Before it, in July, its rival Delta Air Lines had placed an order for 12 medium-haul A220s and, since the spring, it has been in discussions with Airbus for a giant order for long-haul A330s and A350s.
“Delivery delays”
This buying frenzy is not accidental. The three American majors intend to benefit from the strong rebound in traffic. On July 4, with 2.88 million passengers transported on that day alone, the companies broke their record which dated November 28, 2019. Just before the pandemic. “I am confident that our strategy is the right one, as we continue to add new, larger aircraft, to take full advantage of our growing flying opportunities both internationally and domestically”said Scott Kirby, CEO of United Airlines.
American, Delta and United also want to secure the delivery of their future planes from Airbus and Boeing. Indeed, the main challenge for the two competing aircraft manufacturers is no longer to garner additional orders, but to satisfy their customers by delivering the aircraft as quickly as possible.
World number one in aeronautics, Airbus already has more than 8,000 aircraft in its order book, including nearly 7,000 medium-haul aircraft. Today, companies have to wait, on average, five years before having their planes. “Normally, we wouldn’t order this far in advance”recognized Andrew Nocella, United’s commercial director.
Placing giant orders allows you to obtain better prices, but also the best slots on the assembly lines. “Production lines are now regularly held up by supply chain problems, and delivery delays will steadily increase until the end of the decade”, added the sales boss. With the constant increase in production rates, the chain of subcontractors is always under pressure, at Airbus as at Boeing.
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