Boeing Enhances Fuel Efficiency of United Airlines' Boeing 777 Fleet

Strategic Insights -

Boeing has entered into an agreement with United Continental Holdings Inc, the parent company of United Airlines and Continental Airlines, to upgrade the fuel efficiency of their Boeing 777 fleet. The Performance Improvement Package involves modifying the aircraft with a software change to enable a drooped aileron, a ram air system improvement, and the installation of improved wing vortex generators. This upgrade is expected to reduce fuel spending per aircraft by around USD200,000 annually, based on crude oil prices at USD100 per barrel. The package will be installed on 52 United Airlines 777s.

Key Takeaways:

  • The Performance Improvement Package is designed to enhance fuel efficiency and reduce emissions in United Airlines' Boeing 777 fleet.
  • The modification will be installed on 52 United Airlines 777s.
  • The upgrade is expected to result in a USD200,000 annual reduction in fuel spending per aircraft, based on crude oil prices at USD100 per barrel.
  • Continental Airlines, which merged with United Airlines in 2010, initially signed up for the Performance Improvement Package in 2007, covering 20 777s.
  • Financial terms of the contract between Boeing and United Continental Holdings Inc were not disclosed.
  • The Performane Improvement Package involves improving each aircraft's aerodynamics through a software change, a ram air system improvement, and the installation of improved wing vortex generators.

Statistics:

  • 52 United Airlines 777s will be modified with the Performance Improvement Package.
  • The upgrade is expected to reduce fuel spending per aircraft by around USD200,000 annually.
  • Crude oil prices at USD100 per barrel were used as the basis for the fuel spending reduction estimate.
  • 20 Continental Airlines 777s were initially covered by the Performance Improvement Package in a 2007 contract.
  • 2010 saw the merger of United Airlines and Continental Airlines.

Sources:

  • "US aircraft maker Boeing (NYSE:BA) has entered into an agreement with United Continental Holdings Inc (NYSE:UAL), the holding company for United Airlines and Continental Airlines, to enhance the fuel efficiency of United's Boeing 777 fleet." (AIRLINE INDUSTRY INFORMATION via COMTEX)
  • Boeing will install the Performance Improvement Package on 52 United Airlines 777s, expected to result in a USD200,000 annual reduction in fuel spending per aircraft, based on crude oil prices at USD100 per barrel. (AIRLINE INDUSTRY INFORMATION via COMTEX)
  • "Continental Airlines, which merged with United Airlines in 2010, signed up for the Performance Improvement Package in 2007 in a contract that covered 20 777s." (AIRLINE INDUSTRY INFORMATION via COMTEX)
  • "As of Saturday, 03-19-2011 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated a DOWNTREND on 03-16-2011 for BA @ $68.51." (COMTEX)
  • "As of Saturday, 03-19-2011 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated a DOWNTREND on 03-17-2011 for UAL @ $22.67." (COMTEX)