((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
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Talks focus on A321neo and United’s stalled A350 order -sources
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Boeing 737 MAX 10 plagued by schedule doubts after MAX 9 explosion
(Adds context from paragraph 7) by Tim Hepher and Rajesh Kumar Singh
United Airlines
UAL.O has approached Airbus about buying more A321neo jets to fill the potential void left by the delayed Boeing 737 MAX 10, in a compromise likely to break the impasse on a long-delayed separate order for larger jets, according to reports. industry sources.
United Chief Executive Scott Kirby recently traveled to Toulouse to probe the manufacturer over a possible quid-quo-pro deal after a mid-flight emergency on an Alaska Airlines 737 MAX 9 raised new doubts about the certification of the already delayed MAX 10, they said.
“United Airlines is in talks with Airbus about possible alternatives to ordering the MAX 10. To my knowledge, no agreement has been reached,” said a person familiar with the discussions.
Discussions are at an early stage and there is no guarantee of an agreement, the sources said.
Airbus AIR.PA and United Airlines declined to comment.
Kirby’s previously unreported trip to Toulouse is the latest twist in a deepening crisis engulfing Boeing, as the plane maker seeks to reassure the public and regulators on the quality and safety of production, while preventing key orders from being lost.
Last week, Mr. Kirby called the partial grounding of the MAX 9 “the final straw” following certification delays for the MAX 10, the largest member of a family of jets tarnished by an earlier safety crisis caused by two fatal accidents.
United has not canceled any of the 277 MAX 10s on order but has removed them from its internal plans, Mr. Kirby told reporters last week, casting doubt on how to fill the void at a time when rival Airbus is fully booked.
Bloomberg News reported Friday that Airbus was seeking to buy back A321neo positions in the jet market to be able to develop a proposal if it opens up.
Trade publication Air Insight reported that Airbus and United were in talks.
Any deal between United and Airbus would depend on the scarcity of the A321neo, which is the most in-demand plane in its class, and the status of United’s contract with Boeing, which is expected to be the subject of intense discussions.
Kirby said last week that United had not canceled any MAX 10s, but he added: “Boeing will not be able to meet its contractual delivery times for at least a large number of these planes and we will leave it at that.”
Signs of a potential deal with Airbus have raised “concerns” at Boeing, a senior industry source said.
But the manufacturer is currently unable to provide the clarity that United and others want on the MAX 10 because of doubts over the certification timeline.
Boeing, which has pledged to address quality issues that may have caused a door plug on a MAX 9 to explode and partially ground the plane, declined to comment on the discussions. commercial.
Boeing Commercial Airplanes Chief Executive Stan Deal said in a letter to staff Friday that he was “deeply sorry for the significant disruption and frustration to our customers.”
United resumed MAX 9 flights on Saturday.
A350 DELIVERIES
The negotiations come as Airbus firmly controls the busiest part of the jet market, where its 240-seat A321neo has a strong lead over the upcoming MAX 10.
In contrast, Airbus failed to deliver a single one of its larger A350 jets to United after winning a sale as early as 2010, following a merger between United and longtime Boeing customer Continental Airlines that triggered a re-examination.
Orders were gradually postponed until around 2030.
According to industry sources, both sides have tentatively agreed that any deal for A321neo planes would return to the 45 A350s ordered by United and include at least a firmer delivery schedule after several postponements by the airline based in Chicago.
Michael Leskinen, United’s chief financial officer, said last week that the company plans to begin A350 deliveries early next decade to replace aging Boeing 777s.
United has long been a crucial battleground, as Airbus competed with Boeing for part of its domestic market and eventually supplanted it as the world’s largest manufacturer.
In 1992, Airbus landed an A320 order that ended United’s reliance on Boeing, with which United has common roots.
The unexpected deal sparked a rethink that helped launch the MAX’s predecessor, the best-selling 737NG.
Now, United’s urgent need for planes looms as a milestone in the problems facing its successor, the MAX.
The latest MAX crisis and broader questions about the state of the aircraft market duopoly are set to dominate the annual meeting of aviation financiers in Dublin from Monday.