United Airlines said Wednesday it had ordered 50 Airbus A321XLR aircraft to replace an existing fleet of aging Boeing 757-200s jets.

The Chicago-based airline said that the Airbus jets, a long-range version of the European manufacturer's single-aisle A321neo, are set to be delivered starting in 2024. The deal is estimated to be worth $6.5 billion (€5.9 billion).

United Chief Commercial Officer Andrew Nocella said the Airbus jets will serve European destinations from east coast hubs in Newark/New York and Washington.

The new Airbus aircraft's range is 15% higher than that of its predecessor, the A321LR, making it a cost-effective alternative to longer-range wide-body planes. The A321XLR's fuel tanks allow it to cover 5,400 miles (8,700 kilometers) in nine hours — significantly more than the Boeing 737 Max jet.

News of the agreement between Airbus and United was felt on the stock market as shares in Airbus rose 2% on Wednesday.

Airbus turns 50 with little fanfare Euro a boost to the company Airbus has its origin in a consortium formed by plane makers in France, Germany and Spain in 1969. Creating a fully integrated company, though, was only possible because of the euro introduction in 1999, which helped to create a consolidated balance sheet for the company, CFO Harald Wilhelm tells the Wall Street Journal.

Airbus turns 50 with little fanfare Airbus the job creator "We employ 130,000 highly skilled people globally and are a powerful engine of productivity for Europe," says Airbus CEO Guillaume Faury. The company makes half of the world's large commercial aircraft and also runs a helicopter, defense and space business.

Airbus turns 50 with little fanfare Meeting medium-haul requirements In 1984, Airbus launched the A320. The single-aisle medium-haul passenger plane set out to challenge US rival Boeing, which had clearly dominated the largest segment in the aviation market. Nowadays, an A320 takes off or touches down every 2.5 seconds, which testifies to its enormous success.

Airbus turns 50 with little fanfare Upgraded jet even better The A320 prepared the ground for the much more fuel-efficient A320neo. It has become the backbone of the company and has gained even greater importance after Boeing's competing 737 MAX planes were grounded following two deadly crashes.

Airbus turns 50 with little fanfare Complete failure? This is not to say that Airbus production has always run smoothly. At the beginning of this year, the firm announced that it would scrap the making of its A380 passenger giant by 2021. It explained that the number of orders was not enough to turn the A380 into a profitable undertaking.

Airbus turns 50 with little fanfare In the crosshairs While the company as a whole is in good shape, it's currently facing investigations in France, the UK and the US after disclosing transaction irregularities back in 2016, AFP points out. US President Donald Trump has threatened the EU with new tariffs, should it not end its subsidies to Airbus. Author: Hardy Graupner



Bad news for Boeing

The decision by United is a setback for Boeing. The American manufacturer, also based in Chicago, is reeling from the grounding of its 737 Max jets after two deadly crashes in 2018 and in 2019, respectively.

Boeing has no new aircraft to compete with the Airbus A321XLR in the mid-market range.

United's international fleet is mainly made up of Boeing models: the 757, 767, 777 and 787 Dreamliner. The American airline also has 14 Boeing 737 Max planes that were in use before they were grounded.

Read more: US could increase tariffs after WTO rejects EU denials over Airbus subsidies

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