United Airlines’ Quest for New Revenue Bucks Trend Toward Simplicity
Skift Take
United is taking more chances than the typical risk-averse airline. That should help it boost revenue. But will it all be too complicated for the airline's operational teams?
Many airlines are on a simplicity kick, arguing they can save money and operate more efficiently by flying only a few types of airplanes, all built by the same manufacturer and with similar engines, and by standardizing seat counts on each plane type.
But United Airlines is bucking the trend, calculating it can reduce capital expenditures and boost revenue by chasing all opportunities, even if they complicate operations. And a couple of them were apparent Wednesday on the carrier's second quarter earnings call.
Take the fleet. In the second quarter, executives said they not only had recently reached an agreement to buy 19 used Boeing 737-700 airplanes over the next two years from an unknown seller, but also had taken delivery of two more used Airbus A319 aircraft. The airplanes have similar performance characteristics and seating plans – the 737s have 126 seats, while the A319s have 128 — and often airlines prefer one or the