United Virtual Airlines

This has just popped up on the wire services at my newspaper. Looks like we'll be able to fly the 747s for a few years to come.

CHICAGO — United Airlines plans to purchase as many as 150 long-range airplanes from Boeing Co. and Airbus SAS, the largest order placed by a major carrier in an otherwise dismal year for aircraft sales.
Chicago-based United said Tuesday that it intended to buy 25 each of the planemakers’ next-generation aircraft: the Boeing 787-800 Dreamliner and Airbus A350-XWB-900.
The carrier also holds options to acquire an additional 50 of each plane, both of which are designed to be lighter and more fuel-efficient current wide-body jets.
United said it would take delivery of the first 50 planes between 2016 and 2019, when it plans to start retiring its fleet of Boeing 747 jumbo jets and Boeing 767s.
The airplane order is the first placed by United since 1998, and the first major update to its fleet since the late 1980s and early 1990s, when United ordered the Boeing 777s that became a staple of its overseas flying and Airbus A320 narrow-body jets for shorter flights within North America.
Both orders were significant for the manufacturers. United was the launch customer for the roomy Boeing 777, a popular wide-body jet. And it helped Airbus establish an important foothold in North America for the A320, the best-selling family of planes for the European plane-maker.
"Our order is well-timed, using the current down cycle to drive competitive prices from manufacturers eager to rebuild their order books and securing delivery dates that allow us to retire and replace our fleet at an appropriate time," United CEO Glenn Tilton told employees in a message Tuesday.
United took advantage of dismal market conditions that have left order books largely empty at Chicago-based Boeing and France-based Airbus this year.
The carrier obtained "significant" back-stop financing from both Airbus and Boeing and terms that will limit its out-of-pocket cash through 2013, Kathryn Mikells, United’s chief financial officer told analysts and reporters during a conference call Tuesday.
United is obligated to pay $60 million to the planemakers over the next three years and a total of $152 million over the next five years — an important consideration for a carrier intent on building up its cash stash and strengthening its balance sheet.
"We got the right aircraft, and we got the right deal," Mikells said.
Mikells declined to provide further details of the discounts and financing terms obtained by United. Analysts had expected the carrier to drive a hard bargain by playing the manufacturers off each other, especially since it is one of the few airlines in the market for planes at a time when other carriers are delaying or canceling aircraft orders.
Mikells said that United intended to shop for narrow-body planes, used for shorter flights, in 2010.
United expects to gain significant operating efficiencies from its new wide-body aircraft, as well as the ability to fly almost anywhere on the globe from Chicago and other U.S. hubs.
The planes will burn about 33 percent less fuel than the aircraft they will replace and save about 40 percent in lifetime maintenance costs, Tilton said.
Landing United’s order is the first big win notched by Jim Albaugh, the new president of Boeing’s commercial airplane business. The announcement comes on a day when Ryanair, another large Boeing customer, signaled that it may not follow through on plans to order 200 Boeing 737s.
Boeing has seen more cancellations than orders for the 787, a hot-selling plane that has been plagued by delays and that is expected to fly for the first time next week.
United, the No. 3 carrier, is the largest U.S. airline to commit to the A350, Airbus’ answer to the largely composite Dreamliner.
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(c) 2009, Chicago Tribune.

Well I guess that this could be a good thing but I just hope they don't start retiring the 757's and Airbuses! I grew up with these aircraft and am not to excited to see them go!

I have mixed feeling about this order. Most of you know that I'm a major Boeing fan and am excited to see the new 787 take to the air after some various delays. To me, UAL is making a smart move in buying the 787 and taking a HUGE risk in the new A350.
Did anybody notice that it wasn't too long after the 787 was announced that Airbus announced their intentions with the A350? They're playing the 'me too' game.
To me, the major flaw is to even orde the 350 when it's not even flying yet. It's no secret that this plane will take a LON time to even fly or get certified.
The 787 is already working on certification. If it was me, I would have ordered the 787 by itself.
I only see one point of logic, this forces Boeing and Airbus to keep their prices down to keep airline business.

I think it was a smart idea to order both, I think they did it to stay on the safe side, if they ordered all 787 and they weren't happy with them then they lose a lot more money, than if they had a mix of both, after they get the airplanes i think they might stick with one variant after the receive both of them. I hope they order the 747-800

Airbus didn't initially want to create the A350 but many airlines pressured airbus to create something to compete with Boeing.

I would love to see the 747-8 in UAL colors. It would be perfect for replacing the 744 eventually.

Hey, as long as PMDG and Level-D "manufacture" the 787 and/or A350 also, then i am a happy camper.