With the latest Airbus order, we are well on our way to completing
steps two and three of United's four step plan for its uses of cash:
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1) Strengthen the balance sheet;
2) Replace aging aircraft;
3) Grow the airline; and
4) Return cash to shareholders (public and employees) |
The latest order, approved by the Board of Directors in July, is composed
of 22 firm and 89 options. The 22 firm aircraft -- to be delivered
between 2001 and 2002 -- will be used for growth. Seventy-five of the 89
options are targeted for replacing each B727 between 2001 and 2004 on its
next scheduled heavy maintenance visit. The remaining 14 options could
be used for additional growth or B737-291 replacement. If all Airbus options
are exercised, we will have 222 Airbus aircraft in our fleet by 2004!
With the Airbus order, we will be opening an Airbus domicile at JFK
in March 1999. Other domicile openings will be evaluated as we take additional
deliveries. A Miami A320 Domicile opening is likely within the next two
to three years.
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