United adds options on its 737 order

Last week, United Airlines announced a big order for new aircraft. For those of you who forgot, the airline has ordered:

• 50 Boeing 737-900ER’s
• 100 Boeing 737-MAX 9 Series

Well it seems that wasn’t all to the order. In a regulatory filing, United has also placed options to its current order, which will more than double this fleet.

The options that United has decided for with Boeing are

• 60 Boeing 737-900ER’s
• 100 Boeing 737-MAX 9 Series

Should United commit to the full amount of the options with Boeing, this presents a massive expansion of 310 aircraft, which will allow United to replace its fleet “en-mass”.

United does not have to convert the options into actual aircraft, rather an option is an agreement to  purchase additional aircraft in the future at an agreed price and date. Options allow places to be reserved when manufacturing aircraft, whilst allowing an airline to judge if the extra capacity is needed… or not.

The 737-900ER’s will be powered by CFM56-7 engines, whilst the 737-Max 9’s will be powered by the new generation CFM Leap-1B engine.

Interestingly, United has also disclosed that it has received compensation from The Boeing Company for the delivery delays of its 110 787-8 and 787-9 aircraft.  The numbers have not been disclosed (or my hunting skills have gotten a lot worse), but it’ll be extra pocket change if United want to plough that into more hardware.

And speaking of the 787 – I’ve got a little giveaway going on! Head to http://economyclassandbeyond.boardingarea.com/2012/07/19/its-another-small-ghettoife-com-giveaway/ to win a Boeing 787 related piece of memorabilia that will look great on your baggage 😉