United Airlines (NASDAQ:UAL) has reached out to Airbus (OTCPK:EADSF) to discuss potential alternatives to Boeing’s 737 Max 10, after a mid-air blowout of a 737 MAX 9 earlier this month raised concerns over MAX 10’s delayed certification, Reuters reported citing people familiar with the matter.
United (UAL) CEO Scott Kirby recently flew to Toulouse, France to discuss a potential quid-quo-pro deal with the French aircraft maker. “To my knowledge no agreement has been reached,” a source told Reuters.
Talks are focused on United (UAL) possibly buying more A321neo planes as well as its delayed A350 order. A321neo is now the most in-demand plane, and a deal would depend on its availability.
Airbus (OTCPK:EADSF) has yet to deliver its larger A350 planes to the airline despite bagging the orders as far back as 2010, due to a review of the United-Continental Airlines merger. The orders have been pushed to around 2030.
United (UAL) has 107 aircraft due for delivery this year, of which 31 are Max 9s. “It is unrealistic to believe all of those aircraft will deliver as planned,” CFO Mike Leskinen warned over an earnings call.
The airline also has 277 Max 10s on order through the remainder of the decade. Leskinen said United (UAL) is reworking its fleet plan, and expects fewer orders and deliveries from Boeing (BA) in 2025.
Meanwhile, in a bright spot for Boeing (BA), it delivered the first 737 Max 8 to a Chinese airline in about five years – a sign that the key aviation market is reopening after a 2019 import ban.