UNITED Airlines Holding, Incorporated Signs A Firm Order For Fifty (50) Airbus A321 Extra-Long Range (X.L.R.) Aircraft, An Estimated $6 Billion U.S.D. Contract.

UNITED Airlines Holding, Incorporated Signs A Firm Order For Fifty (50) Airbus A321 Extra-Long Range (X.L.R.) Aircraft, An Estimated $6 Billion U.S.D. Contract.

By: David Michael Edwards B.S., M.B.A.

David’s LinkedIn professional profile can be viewed by clicking here.

UNITED Airlines Holding, Incorporated (Chicago, IL; United States of America [U.S.A.]) (New York Stock Exchange [N.Y.S.E.] Ticker Symbol “UAL”), announced it “Sets a Course for the Future With Order of 50 Airbus A321XLR Aircraft,” according to United (2019).

United Airlines (United) will begin to phase out and “Retire” its Geriatric fleet of seventy-five (75) Boeing 757200 and Boeing 757300 aircraft, which first flew on February 19, 1982 and were last produced in 2004, and replace them with the new Airbus A321 Extra-Long Range (X.L.R.) aircraft ( Boeing, 2019 and Goldstein, 2019). Airbus Industries (Stock Ticker Symbol “EADSY“), has become a valiant rival to The Boeing Company (N.Y.S.E. Ticker Symbol “BA”) in the airline transport aircraft marketplace.

The Airbus A321 X.L.R. aircraft is a member of the Airbus A320 family. The Airbus A320 aircraft family has “Unbeatable fuel efficiency,” along with seven thousand (7,000) firm aircraft orders for the family, according to Goldstein, 2019. United plans to seat 170 passenger, of the 244 economy seat capacity, in their new single-aisle Airbus A321X.L.R. aircraft to allow for “lie-flat” seating in the Business Cabin (Goldstein, 2019).

The Boeing Company‘s “Boeing 797,” or New Midsize Aircraft (N.M.A.), has been rumored and recently “pitched” to compete with the Airbus A321X.L.R. However, as the ongoing Global Grounding Saga of the Boeing 737 MAX continues the Official “Green Lighted” launch of the Boeing 797 or Boeing N.M.A. will be kept in “Limbo” until the Boeing 737 MAX Debacle Problem is definitely resolved. “Boeing’s New Midsize Airplane (NMA) appears to still have significant momentum toward launch despite the fact that we do not believe there is complete agreement within Boeing. In a special reportCommercial Aircraft: Demand, MAX, NEO, engines, widebodies Berstein says “we expect it will be launched, although no decisions should be expected before resolution of MAX issues,” according to Thomas (2019).

Airbus Industries has Dominated by putting on a “Clinic” and cleaning the floor with The Boeing Company in 2019 overall airline transport category aircraft global market performance, in both fair and reasonably objective, critical analyses and associated evaluations and valuations. Briefly, Airbus Industries has five-hundred and forty two (542) firm “Net” aircraft orders and six-hundred and forty-eight (648) aircraft deliveries in 2019, to date. In stark contrast, The Boeing Company has Negative ninety-five (95) firm “Net” aircraft orders and three-hundred and twenty-one (321) aircraft deliveries for 2019, to date (Bachman, Philip and Johnsson, 2019).

Airbus Industries first announced the Airbus A321X.L.R. on July 17, 2019 (Airbus, 2019). The A321X.L.R. offers a 4,700 nautical mile (n.m.) range and thirty percent (30%) lower fuel burn, while combining single aisle aircraft economy with wide-body passenger comfort, according to Airbus (2019). The A321X.L.R. can fly for nine (9) hours at a cruising speed of 514 miles per hour (m.p.h.), according to Goldstein (2019).

Four-hundred and fifty (450) Airbus A321X.L.R. firm orders have been placed since its launch announcement on July 17, 2019, according to Goldstein (2019). “Announced customers include JetBlue, International Leasing Corp, Middle East Airlines, Qantas, Frontier Airline’s parent and a similar order of 50 from United rival American” (Goldstein, 2019).

The next-generation A321XLR offers customers an elevated inflight experience and features modern amenities including LED lighting, larger overhead bin space and WiFi connectivity. Additionally, the new aircraft lowers overall fuel burn per seat by about 30% when compared to previous generation aircraft, enabling United to further minimize its environmental impact as the carrier moves towards its ambitious goal of reducing its carbon footprint by 50% relative to 2005 levels by 2050, according to United (2019). “United plans to begin taking delivery of the Airbus A321XLR in 2024. Additionally, the airline will defer the delivery of its order of Airbus A350s until 2027 to better align with the carrier’s operational needs (United, 2019).

United intends on using the new A321X.L.R. aircraft to “further meet the airline’s operational needs by pairing the optimal aircraft with select transatlantic routes. The stateoftheart aircraft, which United expects to introduce into international service in 2024, will also allow United to explore serving additional destinations in Europe from its East Coast hubs in Newark/New York and Washington,” according to United (2019).

REFERENCES:

Airbus. (2019, July 17). Airbus Industries Launches Longest Range Single-Aisle Airline: The A321XLR. Airbus Industries. Accessed on December 5, 2019. Retrieved from: https://www.airbus.com/newsroom/press-releases/en/2019/06/airbus-launches-longest-range-singleaisle-airliner-the-a321xlr.html

Bachman, J., Philip, S.V., & Johnsson, J. United Places $7 Billion Order For LongRange Airbus A321s. Bloomberg.com Accessed on December 5, 2019. Retrieved from: https://www.bloomberg.com/news/articles/2019-12-03/united-nears-7-billion-order-for-longest-range-airbus-a321-jet

Boeing. (2019, June 25). 757 Commercial Transport. The Boeing Company. Accessed on December 5, 2019. Retrieved from: https://www.boeing.com/history/products/757.page

Goldstein, M. (2019, December 4). United Airlines To Buy 50 Ultra Long Range Airbus A321XLR Aircraft In An Estimated $6 Billion Deal. Forbes Magazine. Accessed on December 5, 2019. Retreived from: https://www.forbes.com/sites/michaelgoldstein/2019/12/04/united-airlines-to-buy-50-ultra-long-range-airbus-a321xlr-aircraft-in-estimated-6-billion-deal/#fa40908624ac

Thomas, G. (2019, October 2). Boeing Will Launch 797A Plane Passangers Will LoveSuggests Leading Analyst. Airline Ratings. Accessed on December 5, 2019. Retrieved from: https://www.airlineratings.com/news/boeing-will-launch-797-plane-passengers-will-love-suggests-leading-analyst/

United. (2019, December 3). United Airlines Sets A Course For The Future With Order Of 50 Airbus A321XLR Aircraft. United Airlines. Accessed on December 5, 2019. Retrieved from: https://hub.united.com/2019-12-03-united-airlines-sets-a-course-for-the-future-with-order-of-50-airbus-a321xlr-aircraft-2641509684.html

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