United’s order for A350 aircraft in danger due to legal battle with Rolls-Royce

United Airlines recently announced that they will not be adding the Airbus A350-900 to their fleet after a long-standing legal battle with Rolls-Royce, the exclusive engine provider for this aircraft model. This decision marks the end of a turbulent journey for the 45 A350-900s that United Airlines initially ordered in 2009.

The airline’s planned acquisition of these A350-900s was not without its challenges. At one point, United Airlines even changed its order to the larger A350-1000 model before reverting back to the A350-900 in 2017. Former Chief Financial Officer Andrew Levy had shared the airline’s intention to not only acquire the A350-900 but also add an additional 10 aircraft to their order, bringing the total to 45.

However, delays in delivery saw the airline pushing back the expected arrival date from 2022 to 2027. The relationship between United Airlines and Rolls-Royce took a sour turn when the airline accused the engine manufacturer of breaching an agreement dating back to 2010. In 2017, United Airlines made a payment of $175 million to Rolls-Royce, but following the alleged breach, demanded further payment, which Rolls-Royce failed to fulfill. This dispute led to the termination of agreements between the two companies, with United Airlines seeking to recover the owed amounts and additional damages.

As the legal battle unfolds, United Airlines must now reconsider its fleet strategy. With an aging fleet of Boeing 777-200s, some of which are over 30 years old, and no immediate plans for their retirement, the airline is faced with critical decisions. While their fleet plan for 2026 includes the delivery of 16 new 787 aircraft, the fate of their existing 777 series remains uncertain.

In light of these developments, United Airlines appears to be reevaluating its long-term commitment to the A350-900. The airline recently amended its purchase agreement with Airbus regarding this aircraft model, but specific details of this amendment remain confidential. With indications from their annual reports suggesting that they do not plan to take delivery of the A350-900s in the coming years, United Airlines is at a crossroads in determining the future composition of their fleet.

The decision to forego the A350-900 order comes on the heels of Air Canada’s announcement of their acquisition of the same aircraft model. This contrasting move highlights the diverse strategies adopted by different airlines in response to changing market conditions and internal challenges.

As United Airlines navigates the complexities of its legal dispute with Rolls-Royce and evaluates its fleet requirements, the airline industry eagerly anticipates how these decisions will shape the future of one of the world’s largest carriers. With multiple factors at play, including aircraft availability, operational needs, and financial considerations, United Airlines’ strategic choices in the coming months will undoubtedly have a significant impact on its long-term trajectory in the aviation industry.