United to order 150 new aircraft..

[Montague S]

our friends at the Chicago based UAL corp are looking at a major fleet upgrade, where the money is coming from is anyone's guess.

http://www.thestreet.com/_yahoo/story/10509235/1/united-plans-to-order-up-to-150-jets-report.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

[Craig Murray]

Like the "New GM" maybe we'll soon see the "New New New United"?

A great idea would be to order some new aircraft and launch a new livery and commence a re-paint of the existing fleet - oh wait, they're still doing that after the last rebranding exercise :D

The Boeing 747-8 might be a good place to start, does it have any passenger sales that aren't business jets? Oh look, Lufty has ordered 20! Way to go Lufthansa!!! I'm sure Boeing would cut the locals a good deal to rack up some quick sales. Slip some 777-200LR and 300ER's into the equation and whammo the fleet replacement is well underway. Replace 737's with A32X series aircraft and there's you'd be moving close to 150 aircraft!

[Matt_L]

Didnt they only recently announce new order for some A319s/320s (if im not mistaken) and with the current cabin upgrades also breaking the budget.

As you say Montague anyones guess really.

[Mike Scott]

I've included a copy of management's announcement to the rest of us indentured servants !!! While yes we regard it as great news the bigger concern (as mentioned previously) is where the $$$ are going to come from. New aircraft are great but what about our new contracts that are about to be negotiated ??? they had better find the money for those (all of them) before they go buying new aircraft then heading off into the sunset to collect golden parachutes and the infamous ridiculous bonus etc.

This management team has never demonstrated their ability to either run an airline or make sound judgements that make both fiscal and economic sense. Business 101 was not and never has been a requirement to become a United executive or CEO. So...having said all that, the basic consensus amongst us employee types is that we will believe the current new aircraft story when we see them on the ramp. I for one hope it happens (in particular the -8's)since I then might be tempted to extend retiring (which is just a year away) for a couple of more years just to fly the new equipment.:)

Here is the info you alll are much more interested in:

We are kicking off a fleet modernization program today with a request for proposal (RFP) that has the potential to result in a large order of next-generation widebody aircraft and narrowbody aircraft that would replace our oldest fleet type, the Boeing 757s.
"This presents a strategic opportunity for both United and the manufacturers as this program could well define our fleet strategy for the next twenty-five years," says Glenn Tilton, chairman, president and CEO. "As we have consistently said, we will only invest in new aircraft when we can generate a return on our investment, and we believe we have a unique opportunity to do so now, leveraging a fleet replacement strategy as one of the building blocks to running a great airline.”

The RFP is the start of a multi-month competitive process.

"The work we have completed to date through our Focus on 5 prepares us well to consider an investment in aircraft," says John Tague, EVP and chief operating officer. "We are building a best-in-class cost structure, and we are taking the right steps to enhance the quality of our service and our operational performance. New aircraft would provide us the opportunity to improve our cost structure, eliminating aircraft that are more costly to operate and delivering better service and an improved onboard environment for our employees and customers, while allowing us to consider markets not available to us today."

"We have consistently advocated a disciplined capacity strategy for the company, and we will only commit to new aircraft if it does not impede the progress we are making to build liquidity and improve our financial performance," says Kathryn Mikells, SVP and chief financial officer. "This is a competitive time for manufacturers, creating a unique opportunity for United. This process also represents a major strategic opportunity for Airbus and Boeing, as the winner will place its new generation widebody aircraft with one of the largest operators of twin-aisle aircraft in the world."

While we are doing the work necessary to determine if it is the right time to consider a future investment in aircraft, we remain committed to our current rollout of our International Premium Travel Experience (IPTE) aircraft. IPTE is a critical driver of customer satisfaction and is also allowing us to size our premium cabins appropriately.

If there is a compelling business case for ordering new aircraft, an order could be completed as early as the fall of 2009. Manufacturer financing involvement at some level is a typical part of the process.


If anybody wants a copy of the Q and A doc that went with this you can email me.

MS

[Stephen Brown]

I would expect there would be a fair amount of pressure to buy Boeing considering the current climate.

[Andrew M]

Good luck to them getting credit for that many aircraft!