Airlines is likely to cancel its outstanding order for 42 Airbus A319/320
aircraft, a decision which will cost the carrier over $90 million in lost
Star Alliance member, which still has 23 A319s and 19
A320s on order, has disclosed in a 10-Q filing with the US Securities and
Exchange Commission that it will probably not be taking the jets.
believes it is highly unlikely that it will take delivery of these [42 Airbus]
aircraft in the future, and therefore believes it will be required to forfeit
its $91 million of advance delivery deposits,” the airline says, adding
that the deposits are “not transferable”.
notes in the July filing that the purchases are still included under its total
commitments, “as the company has not formally terminated the orders”.
a previous 10-Q submission, filed in May, United said it had reached an
agreement in January 2006 with the manufacturer to “delay, with the right to
cancel” these future orders.
also reached an agreement with the powerplant
manufacturer, International Aero Engines, “eliminating all provisions
pertaining to firm commitments and support” for future Airbuses.