Boeing Blues? United Airlines May Ditch 737 Max For Airbus A321Neo Jets Due To Delays

United Airlines (NASDAQ:UAL) is reportedly discussing with Airbus SE (OTC:EADSY) to acquire more A321neo jets potentially. This move could mitigate the impact of the delayed Boeing (NYSE:BA) 737 Max 10.

What Happened: The talks, initiated by United CEO Scott Kirby, are still in the early stages, according to sources reported by CNBC. The potential deal could also influence United’s existing order for larger jets.

These discussions come in the wake of a mid-air emergency involving an Alaska Airlines 737 Max 9, which has raised fresh concerns about the certification of the already delayed Max 10. United has not canceled any of the 277 Max 10 jets it has on order but has removed them from internal plans.

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Kirby has described the Max 9’s partial grounding as “the straw that broke the camel’s back” following certification delays to the Max 10, the largest member of a jet family previously marred by a safety crisis caused by two fatal crashes.

Why It Matters: The potential deal with Airbus comes amid a series of challenges for Boeing. The company’s 737 Max 9 aircraft were recently cleared for takeoff after a temporary grounding due to a door plug incident. This incident, along with other quality issues, has led to a fiasco that could significantly impact the entire U.S. economy, according to aviation expert Mike Boyd.

Boeing’s handling of ongoing quality issues has also been a concern for Kirby, who has reportedly expressed dissatisfaction with Boeing’s management.

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