United’s A350 Jet Order Faces Fresh Uncertainty as Engine Dispute Deepens

Post by : Saif

A long-running aircraft purchase plan by United Airlines has entered another uncertain stage after a serious contract dispute with engine maker Rolls-Royce. The disagreement has created fresh doubt about whether the airline will receive its planned A350 jets on time, or even at all. The issue became public through a recent regulatory filing in which the airline confirmed that it is now in a formal dispute with the engine supplier and has removed any clear delivery schedule for the aircraft.

The order covers 45 A350 widebody jets built by Airbus. This deal goes back to 2009, before United merged with Continental Airlines. Since then, the order has been changed many times. Delivery targets were pushed further and further into the future. Aviation experts often describe it as one of the most delayed major aircraft orders in recent airline history. Today, the planes are still listed in the airline’s future fleet plans, but only with a rough note that deliveries would happen after 2027, without firm dates.

According to the filing, the core problem is an engine and maintenance contract first signed in 2010. United says it paid about 175 million dollars upfront in 2017 as part of that long-term agreement. The airline claims that the engine company failed to meet certain contract conditions late last year. Because of this, United is asking for the return of that payment along with additional compensation. Rolls-Royce has denied breaking the contract and says it has met its obligations. The company has said it values the airline as a customer and hopes the matter can be resolved, but it also states that it is confident in its legal position. Both sides now argue that the other is responsible, and both claim money is owed.

This dispute is more serious than a normal supplier disagreement because Rolls-Royce is the only approved engine supplier for the A350 aircraft. Unlike some other jet models where airlines can choose between two engine makers, the A350 uses a single engine type. That means the airline cannot simply switch to another engine provider if the relationship fails. When an engine contract turns into a legal fight, aircraft delivery plans can quickly become unstable.

Large aircraft deals are built on three connected relationships — the airline, the aircraft manufacturer, and the engine supplier. These agreements include not only the aircraft but also long-term maintenance support, spare parts supply, and performance guarantees that can last for many years. When one part of this structure is under dispute, the whole deal feels pressure. The aircraft maker continues to show the order in its official backlog, which is normal practice while contracts are still legally active.

United has also indicated that it is reviewing what the engine dispute could mean for other connected agreements. This suggests the airline is studying the wider business impact, not just the engine payment issue. When delivery timing becomes unclear, airlines must rethink fleet planning, pilot training, maintenance setup, and route expansion plans. Uncertain arrivals make long-term strategy harder and riskier.

The airline still needs to replace older long-haul aircraft in the coming years. Many widebody jets now in service will become too costly to operate as they age. Newer aircraft like the A350 are designed to use less fuel and offer better passenger comfort. But those benefits only matter if the planes arrive on schedule. Too many delays reduce the value of the original plan.

At the same time, United has other fleet choices. It is a major buyer of Boeing widebody aircraft and has also ordered large numbers of smaller Airbus jets. Because of this mixed fleet approach, the airline has some flexibility. It could adjust its future purchases if the A350 program becomes too difficult or too expensive to continue under current terms. Some industry observers believe the order could be reshaped or converted to other aircraft types instead of being fully canceled.

Earlier comments from the airline’s chief executive suggested that a final decision on the A350 order would be made as part of a long-term widebody replacement strategy. The new dispute makes that decision more complex. Removing delivery timing from official reports is often seen by investors as a warning sign that negotiations are under stress.

This case is a reminder that even billion-dollar aircraft orders signed many years earlier are not guaranteed until planes are delivered and flying. Legal terms, supplier performance, and contract trust are just as important as aircraft technology. For passengers, the effect may appear slowly through delayed fleet upgrades or route changes. For the aviation industry, the lesson is clear: strong contracts and stable partnerships are necessary to keep large fleet plans on track.

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