Is there a major corporation in America whose business plan more resembles that of a 20-year old coed majoring in Mrs. than United Airlines? Like those girls who go to college mostly intent on finding a proto-doctor or lawyer to latch on to and marry, United seems incapable of imagining itself not getting hitched at some point in the near future – with little thought as to what happens beyond that.
The latest sign of this is the company’s announcement that it is likely to cancel its order for 42 Airbus A320 series narrowbody jets, thereby forfeiting $91 million in deposits. This would leave United with exactly zero planes on order. The other big carriers — American, Delta/Northwest, Southwest, Continental, yes, US Airways — do if (often) only as replacements for (some of) older existing planes they are retiring or to expanding service to Europe and Asia.
United’s solution to fleet replacement was simply to shrink its system by getting rid of 100 planes — no replacements. And take no new narrowbodies until the next generation of jets is available — which is about a decade from now. Widebody jets for international expansion? Unlike single-aisle jets, the next generation of big twin-aisle jets is available sooner, not later. Airbus would gladly apply that $910 million towards some A330s, A350s, or A380s but United obviously doesn’t even seem interested in that.
Not having planes on order does make doing a merger deal easier. And who makes United’s (or at least its managements’ hearts) go pitty-patter? Continental remains the preferred beau, but if CO finds United too dysfunctional, there’s always… US Airways.
