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Written by Tim Heffer and Rajesh Kumar Singh
DUBLIN/CHICAGO (Reuters) – United Airlines has approached Airbus about buying more A321neo jets to fill a potential void left by Boeing 737 MAX 10 delays. In return, the deadlock over long-delayed individual orders for large jets is likely to be eased. said an industry official.
United Airlines CEO Scott Kirby recently spoke out after the mid-air emergency of an Alaska Airlines 737 MAX 9 aircraft cast new doubt on the already delayed certification of the MAX 10. He reportedly flew to Toulouse and approached the plane maker about a deal that would give him a fair return.
“United Airlines is in discussions with Airbus about possible alternatives to the MAX 10 order. To my knowledge, no agreement has been reached,” said a person familiar with the discussions.
Negotiations are at an early stage and there is no guarantee of an agreement, sources said.
Airbus and United Airlines declined to comment.
Mr. Kirby’s previously unreported visit to Toulouse is the latest development in a growing crisis involving Boeing, which has been trying to prevent the unraveling of critical orders while discouraging the public about the quality and safety of its production. They are trying to reassure regulators.
Mr. Kirby last week called the partial grounding of the MAX 9 a “beat the camel out of business” following certification delays for the largest member of the jet family, marred by previous safety crises with two fatal crashes. It was called “Tawara.”
Mr. Kirby told reporters last week that United had not canceled the 277 MAX 10 planes on order, but had removed them from internal plans, adding that United Airlines had not canceled the 277 MAX 10 planes it had on order, but had removed them from its internal plans, adding that United Airlines is not canceling the 277 MAX 10 planes it has on order at a time when rival Airbus planes are selling out in large numbers. He said questions remain about how to close the gap. .
Bloomberg News on Friday reported that Airbus is looking to buy back its A321neo position from the jet market so it can build an offer when space becomes available.
Industry magazine Air Insight reported that Airbus and United were in talks.
A deal between United and Airbus will depend on the scarce availability of the A321neo, the category’s most sought-after aircraft, and the status of Boeing and United’s contract, which is expected to be hotly debated.
Kirby said last week that United Airlines is not canceling the MAX 10, but added that “Boeing is not going to be able to meet contract deliveries on at least a lot of these aircraft and let’s leave it alone.”
Signs of a possible Airbus deal are causing “concerns” for Boeing, an industry executive said.
But the plane maker is currently unable to provide the clarity that United Airlines and others want about the MAX 10 because of questions about its certification schedule.
Boeing has promised to address quality issues that may have caused the MAX 9’s blown door plug and partial grounding, but declined to comment on commercial negotiations.
“We deeply regret the significant disruption and frustration this has caused to our customers,” Stan Deal, CEO of Boeing Commercial Airplanes, said in a letter to employees on Friday.
United Airlines resumed operating MAX 9 flights on Saturday.
A350 delivery
The talks come as Airbus firmly controls the busiest part of the jet market, with the 240-seat A321neo having a significant lead over the upcoming Max 10.
By contrast, the company lost a single large A350 aircraft after winning a sale in 2010, after United Airlines’ subsequent merger with Boeing’s longtime customer Continental Airlines triggered a review. Unable to deliver to United.
Orders are gradually being postponed until around 2030.
The A321neo jet contract will require United to reconsider its 45 A350s on order and at least provide a firmer delivery schedule after several delays by the Chicago-based airline, industry officials said. Both sides have tentatively agreed to include it.
United Airlines Chief Financial Officer Michael Leskinen said last week that the airline is considering starting deliveries of A350s in the first half of the next decade to replace its aging Boeing 777s.
United Airlines has long been a key battleground as Airbus challenges Boeing for parts of the domestic market and eventually overtakes Boeing as the world’s largest manufacturer.
In 1992, Airbus won the A320 order, breaking its dependence on Boeing, which shares corporate roots with United Airlines.
The unexpected deal prompted a rethink and helped launch the best-selling 737NG, the MAX’s predecessor.
Now, United’s urgent need for aircraft is shaping up to be a milestone in the problems facing its successor, the MAX.
Broader questions surrounding the latest MAX crisis and the duopoly status of the aircraft market are expected to dominate the aviation investors’ annual meeting, which begins in Dublin on Monday.
(Reporting by Tim Hepher, Rajesh Kumar Singh; Additional reporting by Valerie Insinna; Editing by Jane Merriman)
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