Reading United Airlines most recent quarterly report, I noticed under the “Capital Commitments” United has a Nonbinding commitment for 42 A319 and A320 aircraft, which equals to $2.3 billion. In their filings, they state that they believe it is “highly unlikely that it will take delivery of these aircraft”. In addition, that it will have to forfeit $91 million of the advanced delivery deposits.
Airbus is currently reporting a 2,600 A320 family backlog and as reported on June 23, 2009. Airbus took delivered of the first A320 aircraft assembled at its Final Assembly Line China (FALC) in Tianjin China. Gives a new meaning to “Made in China.”
With United Airlines backing out of the orders this is a win, win for Airbus. They will cut their backlog down by 42 aircraft and they get a cool $91 million.
Jock
