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UA Orders 25 E175s and 4 B789s

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Old Jul 16, 2018, 6:00 am
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UA Orders 25 E175s and 4 B789s

http://otp.investis.com/clients/us/u...17&Index=10000

United Airlines Announces
Fleet Update Company to purchase 25 new Embraer E-175 and 4 new Boeing 787-9 aircraft CHICAGO, July 16, 2018 — United Airlines (UAL) today announced orders to purchase 25 new Embraer E-175 and 4 new Boeing 787-9 aircraft. United expects to take delivery of the Embraer E-175 aircraft in 2019 and expects to take delivery of the Boeing 787-9 aircraft in 2020. The 25 new E-175 aircraft will replace 25 CRJ-700 aircraft currently being flown by our United Express partners. These new E-175 purchases will allow United to offer a more comfortable and efficient aircraft to its customers. The new 787-9 aircraft are part of United’s widebody fleet replacement strategy. The 787-9 is the longest-range version of the aircraft, while using 20 percent less fuel than older-generation planes. It will offer the airline’s all-new United Polaris business class seats and other modern amenities to provide a superior onboard experience to United’s customers. “These new 787 aircraft are another step in our widebody replacement strategy, and we will continue to roll out new announcements in the future as we implement our comprehensive fleet plan,” said Gerry Laderman, United’s senior vice president of finance and acting chief financial officer. “The new E-175 aircraft will provide our customers with a superior product that offers the latest in onboard amenities and comfort and will be a terrific addition to our fleet.” Today’s announcement does not change UAL’s previous adjusted capital expenditure guidance. The company will continue to evaluate opportunities to purchase used aircraft.
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Old Jul 16, 2018, 6:10 am
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I wonder if the J count on the 789 will be lower, or if they’ll maintain a 48J configuration. Probably safe to assume that some version of P+ will be on this as well...
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Old Jul 16, 2018, 6:21 am
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Originally Posted by PsiFighter37
I wonder if the J count on the 789 will be lower, or if they’ll maintain a 48J configuration. Probably safe to assume that some version of P+ will be on this as well...
Psi,
i could see united reducing polaris configuration on the 789 to that of the 788 to squeeze in the PE seating, also in the press release it said that the E175 order was to replace 25 crj700, i wonder which carrier that will come from, i can only think of 3 carriers currently proving exceptional service that flies the 700 on the ual side.....gojet,skywest and mesa.
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Old Jul 16, 2018, 7:16 am
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Some of the trunck routes the 789 is showing up sell well up front - requiring current C configuration.
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Old Jul 16, 2018, 7:18 am
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Originally Posted by cosflyer
Psi,
i could see united reducing polaris configuration on the 789 to that of the 788 to squeeze in the PE seating
I was thinking that as well - that rows 6-8 could become P+. That said, that means that the 789 would have more P+ seating than the 772s would, as I assume they could squeeze in 5-6 rows within the same space. I would hope that UA does what has been done in the past - take a few rows out of E+ for P+ and keep J count steady - but given the 789s tend to fly ULH routes, perhaps there is more demand for it on those routes(?).
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Old Jul 16, 2018, 7:23 am
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PE replaces rows of E+ in the Polaris configurations we’ve seen thus far (772 and planned 77W), so I don’t anticipate the 789 being different.

Given the considerable number of ULH flights in which UA uses the 789, I don’t see the company going any denser with a “true” Polaris configuration.

As for the E75, UA is maxed out on its 76-seater quota, so these 25 frames will either have a different configuration (70 seats) or UA has managed some sort of compromise with an upcoming pilot contract.

(edit to add that the former is confirmed... 70 seats it is...)
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Last edited by EWR764; Jul 16, 2018 at 7:36 am
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Old Jul 16, 2018, 8:04 am
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Originally Posted by EWR764
PE replaces rows of E+ in the Polaris configurations we’ve seen thus far (772 and planned 77W), so I don’t anticipate the 789 being different.

Given the considerable number of ULH flights in which UA uses the 789, I don’t see the company going any denser with a “true” Polaris configuration.


As for the E75, UA is maxed out on its 76-seater quota, so these 25 frames will either have a different configuration (70 seats) or UA has managed some sort of compromise with an upcoming pilot contract.

(edit to add that the former is confirmed... 70 seats it is...)
That seems like news!
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Old Jul 16, 2018, 8:12 am
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Wonder what the config will be. They could make the entire economy section e+ and still require removal of seats. Would be nice not to follow the DL config of the E175-SC.
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Old Jul 16, 2018, 8:18 am
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Originally Posted by EWR764
PE replaces rows of E+ in the Polaris configurations we’ve seen thus far (772 and planned 77W), so I don’t anticipate the 789 being different.

Given the considerable number of ULH flights in which UA uses the 789, I don’t see the company going any denser with a “true” Polaris configuration.
Agree. Given that Polaris is space neutral to the B/E Diamond, and considering what they've done with all the other Polaris fitted aircraft, I would expect 48 J (or similar), a small PE cabin, and a slight reduction in E+ compared to the current configuration.

And I find it a bit curious they're referring to a widebody replacement program in the context of this purchase - with the 744s out of the fleet, and the three-cabin 763s and 772s all to be converted, what exactly will they be replacing? (Please say the 77Gs . . . .)
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Old Jul 16, 2018, 8:21 am
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Originally Posted by PsiFighter37
I wonder if the J count on the 789 will be lower, or if they’ll maintain a 48J configuration. Probably safe to assume that some version of P+ will be on this as well...

That would make for some nasty equipment swaps. I would think they trade E+ for PE, to make the equipment swaps more tolerable


E175 replacing CRJ-700 - I HOPE they start at IAD with Mesa - IAD-CHS uses CRJ-700 almost exclusively now. It is a nice plane and had FC, but handing over your bag to go under really lowers the life expectancy of the bag significantly.

Originally Posted by Kacee
And I find it a bit curious they're referring to a widebody replacement program in the context of this purchase - with the 744s out of the fleet, and the three-cabin 763s and 772s all to be converted, what exactly will they be replacing? (Please say the 77Gs . . . .)
Not sure what config the 77G is, but I hope it is those horrid high density versions with 8 across first class on the old seats and like 789475290347503 people jammed, crammed and stuffed into economy - they need to go
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Old Jul 16, 2018, 8:55 am
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Originally Posted by Kacee
Agree. Given that Polaris is space neutral to the B/E Diamond, and considering what they've done with all the other Polaris fitted aircraft, I would expect 48 J (or similar), a small PE cabin, and a slight reduction in E+ compared to the current configuration.

And I find it a bit curious they're referring to a widebody replacement program in the context of this purchase - with the 744s out of the fleet, and the three-cabin 763s and 772s all to be converted, what exactly will they be replacing? (Please say the 77Gs . . . .)
I think the ambiguity is deliberate to placate the markets' concern that this won't be a pure capacity add. We don't know much about timing of the deliveries, but 2020 and later seems reasonable, at which point UA will in theory be starting to replace the earlier 767-300ERs. Absent a NMA order or additional 788s (a la AA), more 789s allow UA to reshuffle the deck and use 788s to replace some 763ERs.

It appears 777 replacement gets underway in the 2022-2025 timeframe.
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Old Jul 16, 2018, 9:33 am
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Originally Posted by EWR764
I think the ambiguity is deliberate to placate the markets' concern that this won't be a pure capacity add.
The other market-placating statement is that these purchases fit within latest capital expenditure guidance. No surprises for The Street.
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Old Jul 16, 2018, 9:36 am
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Originally Posted by Hipplewm
Not sure what config the 77G is, but I hope it is those horrid high density versions with 8 across first class on the old seats and like 789475290347503 people jammed, crammed and stuffed into economy - they need to go
Exactly. The 772 HD.
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Old Jul 16, 2018, 10:02 am
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One thing I am curious to know is if these new 787-9 will be fitted with the "old" business class seats in 2-2-2 or if it will have the new Polaris 1-2-1. Praying for the latter.
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Old Jul 16, 2018, 10:06 am
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Originally Posted by FoxFlyer
One thing I am curious to know is if these new 787-9 will be fitted with the "old" business class seats in 2-2-2 or if it will have the new Polaris 1-2-1. Praying for the latter.
The release said it would have the Polaris product, but I'm certainly not praying for it. I've flown on 787s with 1-2-1 seating, and it's tight. The Polaris seats are already tight on the 77W. The 787 is a much narrower plane.
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