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As global carriers rush to order new aircraft RT’s Boom Bust questions quick recovery of travel demand

As global carriers rush to order new aircraft RT’s Boom Bust questions quick recovery of travel demand
Airlines are starting to position their businesses for a recovery with new aircraft orders as more Covid-19 vaccines are distributed globally.

United has moved up the delivery of 40 Boeing 737 MAX aircraft to 2022 and altogether has 188 orders for the single-aisle max jets. The deal comes as United continues to push for a third government bailout.

As the fourth-largest US carrier plans to purchase dozens of airplanes while seeking government help, RT’s Boom Bust talks to Octavio Marenzi of Opimus LLC to find out whether air travel demand will recover quickly by 2022.

“Airlines like United have to sell the story to the government that they’re going to be around and they are going to carry on transporting people and carry on employing people,” Marenzi said.

READ MORE: Boeing backs decision to suspend 777s with P&W4000 engines by US and Japan, recommends airlines follow suit

According to the analyst, placing the bet on buying all sorts of jets is very risky on the part of United.

“The idea that travel is going to fully recover, and recover that quickly is a very-very bold bet,” Marenzi said.

For more stories on economy & finance visit RT's business section

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