United Airlines Close to Gaining Airbus Jets After Boeing Max 10 Delays

An Airbus SE A321 Neo aircraft, operated by United Airlines, in Houston, Texas.Photographer: Callaghan O'Hare/Bloomberg
An Airbus SE A321 Neo aircraft, operated by United Airlines, in Houston, Texas.Photographer: Callaghan O'Hare/Bloomberg
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United Airlines Close to Gaining Airbus Jets After Boeing Max 10 Delays

An Airbus SE A321 Neo aircraft, operated by United Airlines, in Houston, Texas.Photographer: Callaghan O'Hare/Bloomberg
An Airbus SE A321 Neo aircraft, operated by United Airlines, in Houston, Texas.Photographer: Callaghan O'Hare/Bloomberg

United Airlines Holdings Inc. is close to securing three dozen or more Airbus A321neo jets from aircraft lessors, as it looks to replace Boeing Co. 737 Max 10 orders that are at least five years behind schedule, according to people familiar with the matter, Bloomberg reported.

The carrier is in final negotiations for the planes that are due to be delivered between 2025 and 2027, the people said, asking not to be identified as the discussions are confidential. Bloomberg News first reported in January that Airbus SE was also looking for A321 production slots to woo United.

Delays in certifying Boeing’s 737 Max 10 aircraft have jeopardized growth plans at United, which was slated to be the first major customer for the plane. Converting some of those orders to Airbus would give the European planemaker a rare opportunity to undercut its chief rival.

Certification of the Max 10 keeps sliding as regulators more carefully scrutinize new Boeing aircraft entering the market and the federal government is rigorously assessing the company’s quality control.

United Chief Executive Officer Scott Kirby said earlier this week that the carrier was in the market for A321s, but cautioned that he wouldn’t overpay for aircraft just to hit a growth target and would only do a deal “where the economics work.” The airline is likely to end up with a mix of Max 9s and A321s to replace the Max 10s, he said.

Kirby also disclosed that United has told Boeing to stop building Max 10s for its fleet and switch to the smaller Max 9 until the plane-maker can secure federal certification for the 10. United has ordered 277 Max 10s, with options to buy 200 more.

“It’s impossible to say when the Max 10 is going to be certified,” he said. The carrier removed the plane from its fleet planning earlier this year. It is a major part of United’s strategy to shift to larger aircraft.

According to Bloomberg, Boeing had originally targeted beginning commercial flights for the Max 10 in 2020, but the plane’s certification has been pushed back indefinitely as Boeing addresses issues in its factory and contends with increased scrutiny from the Federal Aviation Administration and other US agencies.



China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)
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China Mulls Draft Law to Promote Private Sector Development

A Chinese national flag flutters on a financial street in Beijing. (Reuters)
A Chinese national flag flutters on a financial street in Beijing. (Reuters)

Chinese lawmakers are deliberating a draft of the country's first basic law specifically focused on the development of the private sector, the country’s Xinhua news agency reported.

“The law will be conducive to creating a law-based environment that is favorable to the growth of all economic sectors, including the private sector,” said Justice Minister He Rong, while explaining the draft on Saturday during the ongoing session of the Standing Committee of the National People's Congress, the national legislature.

The draft private sector promotion law covers areas such as fair competition, investment and financing environments, scientific and technological innovation, regulatory guidance, service support, rights and interests protection and legal liabilities.

The draft has incorporated suggestions solicited from representatives of the private sector, experts, scholars and the general public, the minister said.

China left its benchmark lending rates unchanged as expected at the monthly fixing on Friday.

Persistent deflationary pressure and tepid credit demand call for more stimulus to aid the broad economy, but narrowing interest margin on the back of fast falling yields and a weakening yuan limit the scope for immediate monetary easing.

The one-year loan prime rate (LPR) was kept at 3.10%, while the five-year LPR was unchanged at 3.60%.

In a Reuters poll of 27 market participants conducted this week, all respondents expected both rates to stay unchanged.

Morgan Stanley said in a note that the 2025 budget deficit and mix are more positive than expected and suggest Beijing is willing to set a high growth target and record fiscal budget to boost market confidence, but further policy details are unlikely before March.

Last Friday, data released by the country's central bank said total assets of China's financial institutions had risen to 489.15 trillion yuan (about $68.03 trillion) by the end of third quarter this year.

The figure represented a year-on-year increase of 8%, said the People's Bank of China.

Of the total, the assets of the banking sector reached 439.52 trillion yuan, up 7.3% year on year, while the assets of securities institutions rose 8.7% year on year to 14.64 trillion yuan.

The insurance sector's assets jumped 18.3% year on year to 35 trillion yuan, the data showed.

The liabilities of the financial institutions totaled 446.51 trillion yuan, up 8% year on year, according to the central bank.

Separately, data released by the National Energy Administration on Thursday showed that China's electricity consumption, a key barometer of economic activity, rose by 7.1% year on year in the first 11months of the year.

During the period, power consumption of the country's primary industries increased by 6.8% year on year, while that of its secondary and tertiary sectors rose by 5.3% and 10.4%, respectively.

Residential power usage saw strong growth of 11.6% during this period, the administration said.

In November alone, power usage climbed 2.8% from one year earlier, according to the data.