United to Refine New Plane Orders with Boeing, Embraer

By Jesse Sokolow on 15 November 2016
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DSC_0825As part of a group of initiatives to become more profitable, United Airlines announced that it is making changes to several aircraft orders.

The carrier converted its order for 65 Boeing 737-700 aircraft into orders for 61 737 Max planes and four 737-800s. United expects the 737-800s to be delivered by the end of next year, while the 737 Max aircraft will have delivery dates that are yet to be determined.

United said that the changes in orders will allow it to take advantage of the fuel efficiency of the 737 Max planes, and will help the carrier cut capital expenditures by approximately $1.6 billion over the next two years.

Additionally, the airline said that it will purchase 24 Embraer 175 aircraft, as opposed to leasing them through a capacity purchase agreement as originally intended. United will then lease the planes to third party carriers operating as United Express.

As part of its plans to increase revenue and control costs United will introduce new basic economy fares next year.

(Photo: Accura Media Group)

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