This is our quick take because we’re really busy.
- Don’t assume Airbus or Boeing will be the long-term exclusive supplier to the new United. Even though Continental’s Jeff Smisek is the new CEO and he’s from the Continental-exclusive-Boeing-customer company, the new United is to have a balanced mix of officers and United has been a major Airbus customer.
- United’s order for the Airbus A350 remains intact and the Continental crowd inherits this.
- There remains a United order for about 42 Airbus A320s, though UAL has repeatedly said it didn’t expect to take delivery of this order. We’ve never followed the logic, fully expecting UAL to renegotiate the purchase price at some point as part of a new order.
- UAL had planned to issue a Request for Proposal this year and place an order for its single-aisle fleet. This will likely be put on hold pending the consummation of the merger.
- Airbus had planned to offer UAL the A321RE (re-engine) to replace the carrier’s 94 Boeing 757s. Putting the RFP on hold doesn’t necessarily mean Airbus will put the A320RE program on hold.
- Bombardier and Pratt & Whitney were making a big pitch to sell the CSeries equipped with the GTF engine, for an order of 50+50. This will likely be on hold as well.
Here is the 44 page PDF presentation about the merger: CONTINENTALAIRL425-3