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Columbia Business Monthly

Boeing, United Airlines Finalize 737 MAX and 787 Order, Including Record Purchase for 100 Dreamliners

Dec 13, 2022 01:18PM ● By David Dykes

Boeing [NYSE:BA] and United Airlines [NASDAQ:UAL] announced Dec. 13, 2022, that the carrier is investing in its future fleet with an order for 100 787 airplanes, with the option to purchase 100 more. The deal is the largest 787 Dreamliner order in Boeing history. 

All new 787s are built at Boeing South Carolina.

United is also purchasing 100 737 MAX jets, exercising 44 existing options and placing 56 new orders.

"United emerged from the pandemic as the world's leading global airline and the flag carrier of the United States," said United CEO Scott Kirby. "This order further solidifies our lead and creates new opportunities for our customers, employees and shareholders by accelerating our plan to connect more people to more places around the globe and deliver the best experience in the sky."

The airline's current orders for Boeing jets have surpassed 530, including more than 430 737 MAX airplanes.

"With this investment in its future fleet, the 737 MAX and 787 will help United accelerate its fleet modernization and global growth strategy," said Stan Deal, president and CEO of Boeing Commercial Airplanes. "The Boeing team is honored by United's trust in our family of airplanes to connect people and transport cargo around the world for decades to come."

The 787 Dreamliner provides United with efficiency and flexibility across its extensive network of domestic and international flights, Boeing officials said. The 787 also offers a 25 percent improvement in fuel use compared with the airplanes it replaces, depending on the configuration, the officials said.

Boeing officials say the 737 MAX family is designed to offer enhanced reliability and improved fuel efficiency in the single-aisle market. They say the 737 MAX reduces fuel use and CO2 emissions by 20 percent compared to the airplanes it replaces, depending on the configuration.

United officials say the historic purchase is the next chapter in the ambitious United Next plan and will bolster the airline's leadership role in global travel for years to come.

United expects to take delivery of the new widebody planes between 2024 and 2032 and can choose among the 787-8, 9 or 10 models, providing flexibility to support a wide range of routes.

The airline now expects to take delivery of about 700 new narrow and widebody aircraft by the end of 2032, including an average of more than two every week in 2023 and more than three every week in 2024.

Approximately 100 planes of the new widebody order are expected to replace older Boeing 767 and Boeing 777 aircraft, with all 767 aircraft removed from the United fleet by 2030, resulting in up to an expected 25 percent decrease in carbon emissions per seat for the new planes compared to the older planes they are expected to replace.

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries.