United Airlines bets €13bn on return of luxury flying
U.S. carrier United Airlines is revamping its fleet with the largest airliner order in history: the airline has agreed to buy 200 Boeing 737-Max and 70 Airbus SE A321neo jets, a deal valued at about $15 billion.
The United Airlines order includes 50 of Boeing‘s best-selling Max 8 aircraft, as well as 150 of the larger Max 10 jets.
“The bet we’re making today is not about the return of business travel – business travel will return. The bet we’re making today is that customers care about the product,” explains CEO Scott Kirby.
The Boeing and Airbus aircraft ordered by U.S. carrier United Airlines will feature a renovated cabin with backrest screens and larger overhead bins. An ambitious upgrade of its aircraft cabins, building momentum to attract more travelers willing to pay for quality service.
The airline‘s intention is to intensify competition with U.S. rivals Delta Air Lines and American Airlines. The U.S. carrier will also use the new planes to reduce its use of regional jets amid an expected rebound in corporate demand, which is still stuck at less than half its pre-pandemic level.
“We’re extremely serious at United Airlines about getting people to fly with United,” said Chief Executive Scott Kirby. United‘s increased seating capacity will result in an 8 percent decrease in costs for each seat flown per mile, according to Kirby.
The move to larger airliners as well as a refreshed cabin is reminiscent of a strategy laid out several years ago by Delta, which has minimized its reliance on regional jets and moved many routes to larger aircraft with more premium seats. This decision by United to install screens at every seat also echoes Delta’s approach.
“We will compete with all types of products,” said Andrew Nocella, United’s chief commercial officer.
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Featured photo : © United Airlines
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