United Airlines sees Boeing 787 as new long-haul ‘workhorse,’ orders 7 more Dreamliners
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United Airlines is making some necessary changes to its long-haul fleet as people continue to avoid unnecessary travel — especially internationally — amid the coronavirus pandemic.
The Chicago-based carrier is relying on its efficient Boeing 787 fleet to fly its pared back long-haul schedule for the “foreseeable future,” United senior vice president of flight operations Bryan Quigley told pilots in an internal memo on May 2 that was viewed by TPG.
In other words, the Dreamliner is United’s new long-haul “workhorse,” as Quigley put it.
This is a significant shift for United whose international fleet has long depended on the Boeing 777. The launch operator of the 777 in 1995, the airline has 96 of the wide-body jets today, a fleet plan dated April 9 shows. It flies nearly half as many 787s, with 12 -8s, 28 -9s and 12 -10s in its fleet at the beginning of April.
However, the 777 is both larger and less efficient than the 787. Those are both major liabilities in a COVID-19 operating environment where few people are traveling and cost savings are paramount.
“Our ability to weather this storm will be measured by how quickly we cut costs and preserve cash,” said United chief financial officer Gerry Laderman during a first quarter earnings call on May 1.
In the first quarter, United firmed options for seven Dreamliners in something of a testament to the long-term importance of the 787 to its wide-body fleet, a quarterly financial update released Monday shows. The jets, all larger 787-10s, will be delivered in 2021.
The airline ordered the jets before the COVID-19 crisis kicked into high gear for airlines in early March, TPG understands. Laderman said during the call that it would be “financially impractical” to reschedule the deliveries at this point.
United configures its 787-10s with 318 seats: 44 Polaris business class, 21 Premium Plus, 54 Economy Plus and 199 economy. Its 787-9s, which it just began reconfiguring with Polaris seats, have up to 257 seats: 48 Polaris, 21 Premium Plus, 39 Economy Plus and 149 economy.
United is due to take delivery of eight more 787-9s this year — after taking two in April — and eight -10s in 2021. The carrier will operate 71 Dreamliners by the end of next year.
United has yet to decide whether it will use the new 787s to replace older jets in its wide-body fleets, executives said. The carrier is waiting for a firmer view of the recovery from the pandemic to finalize a fleet plan.
All of the international long-haul routes that United will operate in May will be flown with 787s. The -9s will go to Asia and South America, and the -10s to Europe, according to Cirium schedules.
The only exceptions are a Boeing 737 flying between Guam (GUM) and Tokyo Narita (NRT), and a Boeing 767-300ER flying between Houston Intercontinental (IAH) and São Paulo Guarulhos (GRU) for just the first three days of May, Cirium shows.
Quigley outlined United’s initial international flying plans as it comes back from the crisis. 767 pilots will be consolidated to Chicago O’Hare (ORD), Houston and Newark (EWR), and 777 pilots to Newark and San Francisco (SFO). 787 bases will remain open in all of the airline’s hubs except Los Angeles (LAX).
The closure of United’s 787 pilot base in Los Angeles raises questions over the future of its Southern California hub. Already considered among its weakest hubs — Cranky Concierge founder Brett Snyder has called it the “most up for grabs” on United’s map — all of the airline’s long-haul routes from LAX were flown with Dreamliners prior to the pandemic, according to Cirium.
“Everything is on the table in terms of what we look like,” United president — and soon CEO — Scott Kirby said of the carrier’s potential post-COVID restructuring on May 1. “While we don’t have plans to close hubs, when you say everything is on the table we mean everything — there are no sacred cows.”
United is currently planning for capacity cuts of as much as 90% through June. Any service resumptions are dependent on an uptick in the number of people flying.
Featured image by Alberto Riva/TPG.
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