Aerospace Notebook: United dreaming big, as in Boeing 787

By JAMES WALLACE
Seattle Post Intelligencer - USA

ZURICH, Switzerland -- Fresh out of bankruptcy, United Airlines, the world's second-largest airline, is not going to buy new jets from The Boeing Co. or Airbus any time soon.

But when it does, Boeing's 787 Dreamliner would be a good addition to United's fleet, as might Boeing's bigger jumbo jet, the 747-8, said Glenn Tilton, United's chief executive.

"We are really interested in how the 787 technology would play in the United fleet," Tilton said in an interview with the Seattle P-I.

His airline has had preliminary talks with Boeing.

The 787 will be the industry's first large commercial jetliner with a composite airframe, including wings, tail and fuselage. It will have new fuel-efficient engines.

Northwest Airlines, which remains in bankruptcy, and Continental Airlines are the only legacy U.S. airlines to so far order the 787. U.S. airlines, unlike those in Asia and in Europe, are still struggling financially. With the price of oil now up to about $70 a barrel, it is uncertain when the major U.S. airlines will start ordering new jets.

United is following its bankruptcy reorganization business plan that does not include the purchase of new jets for five years, Tilton said.

"When we start beating the financial plan, then we can start having serious discussions (about buying new jets)," he added.

Tilton's comments were made in Zurich during a meeting of the top executives of the airlines that make up the Star Alliance. They were in Zurich earlier this month to welcome in the 17th member, Swiss International Air Lines. They then flew to Johannesburg, where South African Airways officially joined the alliance.

In addition to United, Swiss and South African Airways, the alliance is made up of Air Canada, U.S. Airways, Varig of Brazil, Scandinavian Airlines of Sweden, bmi of the United Kingdom, Lufthansa of Germany, LOT Polish Airlines, TAP of Portugal, Spanair of Spain, Austrian, Thai, Asiana of Korea, All Nippon of Japan, Singapore Airlines and Air New Zealand.

The two U.S. airlines in the alliance, United and U.S. Airways, have both been through bankruptcy and reorganization.

United exited bankruptcy Feb. 1 with about 53,200 workers, or almost 24,000 fewer than when it entered Chapter 11 protection in December 2002. But United said recently that it planned to hire as many as 4,000 employees this year.

For its long-haul fleet, United operates Boeing's 777, 767 and 747. Tilton called the 747 the airline's "workhorse," especially on routes across the Pacific Ocean.

Last year, Boeing announced that it would develop the 747-8, a stretch version that will seat about 35 more passengers than the current model, the 418-seat 747-400. It will also use the fuel-efficient engines that are being developed for the 787. The 747-8 freighter would enter service in 2009, followed by the passenger model. Boeing has customers for the freighter but has not yet signed an airline for the passenger model. Lufthansa, Singapore and British Airways, among others, have said they are interested in the 747-8 passenger plane.

Tilton said the bigger and more efficient 747-8 could eventually turn up in United's fleet, too.

United is one of only two U.S. airlines -- the other is Northwest -- that still operate the passenger version of Boeing's 747-400.

"We are delighted with the combination of 777s and 747s that we have," Tilton said.

The eventual mix of jets that United might order, be it the 787 or 747-8 -- or planes from Airbus -- will depend on how various markets open up, Tilton said.

Airbus is developing the A350 to counter the 787. But the A350, a derivative of the A330, has come under criticism recently from two industry leaders because it is not an all-new design like the 787.

Although the A350 will have new wings and new engines, the fuselage will be essentially the same as that of the A330.

Airbus has said it will continue to look at ways to improve the A350 in light of the critical comments by the chief executives of Singapore Airlines and International Lease Finance Corp.

"The 787 is so much more transparent in the market today than the A350," Tilton said. "The A350 is still on the drawing board. One way or another, the A350 will have to step up and occupy a significant competitive niche for all of us to contemplate whether it is a competitive benefit to us. Right now, it is just not certain what role the A350 will play."

Tilton was asked about another Airbus plane, the A380, the double-decker giant that will enter service with Singapore Airlines at the end of this year. It will seat about 555 passengers in three classes.

So far, no U.S. airline has ordered the A380 passenger plane. UPS and FedEx have ordered the A380 freighter.

"I have not been able to see it," Tilton said when asked if the A380 has a future with United.