The 319s, 737-700 and 320s at United are not getting any younger. The A220-300 and the (most likely forthcoming) A220-500 replaces everything up to a 737-800, but at a much lower operating cost.

Up-gauging does not work out of smaller markets if you can't sell more than 130 (A223) or 150 (A225) seats profitably.

The opportunity cost of more domestic First class on these planes is also very low at one seat per row. And some markets just don't call for premium lie-flat seating.

Even if United doesn't get Delta's kind of A220 deal from Airbus, they might from JetBlue as part of a divided sale. It would also stop Delta from getting more of a very comfortable and competitive aircraft at a cheap price. Further, United's legacy birds cannot financially compete with the A220, they're just not in the same league for operating costs.

 

Isn’t 40% of the worldwide 220 fleet grounded because of Pratt engine issues? Thought I saw a headline about that.

 

Maybe some of the older birds...

But only (just a guess) 2 of JB's 60+ are parked.

 

I am not sold on the math for a small narrow body aircraft with crew today’s crew costs. I don’t think management agrees with this take either…. This isn’t the aviation industry of the 90s/early 2000s.

its not like there’s a significant savings costs wise operating a smaller Narrowbody like a A220-300, A319/320, 737-7/8 vs a Max-9, A321. Also you are limiting and capping revenue potential across the network introducing a small narrowbody unless there’s a intention of using them to replace RJ flying….

They want more seats to spread those higher costs around and have the opportunity to grab higher revenue across the network vs matching capacity to select few markets…

There’s a reason why A321, Max-9, Max-10 have sold and are selling like hot cakes and A220-100/300, A319, A320, 737-7,-8 sales have stalled out….

 

I won't argue low 220 sales is good for the 220

But short-body 73X and 32x don't sell because longer versions on the same wing are lower cost

If you fundamentally decide you need a 100-150 seat airplane ... something designed for that makes sense. If you're looking at a 150-200 seat airplane, all 200's make sense.

 

I think that’s the issue. They have decided that they really don’t want anything for the 100-150 seat market.

 

Clearly that was true in the past. But it's an accounting decision which could change based on external circumstances or internal priorities. The 450 and 550 are good examples of how United is chasing revenue and flexibility now in ways they have not in the past.

 

United hasn’t ordered a plane with less than 166 seats in decades. That’s not going to change now. The MAX 8 will be the smallest A/C in the mainline fleet once the 319/320 -700 are retired.

 

They've only talked about "upgauging". The CASM cost on those planes have to be pretty high.

 

Straight from the founder of B6: UA is not interested
https://viewfromthewing.com/jetblue-...y-will-buy-it/