I’ve been watching the joint United Airlines – Boeing press conference this morning in Charleston, South Carolina and it struck me as noteworthy how United CEO Scott Kirby framed the deal to purchase up to 200 Boeing 787 jets in terms of patriotism and loyalty.
United Airlines CEO Scott Kirby Focuses On Patriotism, Loyalty At Boeing 787 Signing Ceremony
Both on a press call that I took part in yesterday and at the official press conference this morning, Kirby repeatedly emphasized that United’s big aircraft order will create domestic US jobs and burnish manufacturing within the USA. I love this aspect of the deal as well, but I found it to be an interesting point of focus because I am not sure whether an airline that is principally rooted in maximizing shareholder value should be concerned about the country in which jobs are created (versus the quality and price of the aircraft).
Perhaps indirectly you could say more high-paying jobs in the USA produce more customers for United, but I still found it an interesting observation. The result of the deal, however, is cause for celebration for the US economy, even as Airbus also operates an assembly line in the USA (Alabama).
Secondly, Kirby framed the deal in terms of loyalty and told a story in order to make the point at the press conference. Back when he was at US Airways, he was negotiating with Boeing over a deal to purchase 787 Dreamliners. He wanted the best price possible but Boeing politely declined, saying it had promised the best pricing to Continental Airlines and it would keep its word.
Kirby was upset at the time, but when he pivoted from American Airlines to United Airlines, which merged with Continental a few years earlier, he knew he could trust Boeing to give United the cheapest price for the aircraft.
It’s a nice story that illustrates both Kirby’s longevity in the industry, his negotiating prowess, and the importance of loyalty (if everyone gets the “best” price, no one gets the best price).
> Read More: United Airlines Places Firm Order For 100 Boeing 787 Dreamliners, With Option For 100 More
You can watch his remarks below:
CONCLUSION
United Airlines has ordered 100 new 787 Dreamliner jets, 100 737 MAX, and holds an option for 100 more 787s. It’s a big day for both Boeing and United. As Kirby reflects upon what brought the deal together, he has focused on patriotism and loyalty, a reminder that there is far more than pricing at play in the long-term battle between Airbus and Boeing.
Smart move on United’s part. They lobby before Congress on a variety of things, notably the Covid bailout. How much did the cruise industry get as a bailout? Zero, because they could not argue before Congress that they were protecting American jobs (or even paying taxes) since they were foreign based. Your point on the Airbus plant in Alabama is valid, but it does not sell as well as the name Boeing when going before Congress.
Was forcing the COVID mRNA shot on United staff patriotic? No. United knows nothing about patriotism.
Says the guy that cheers beating up cops and storming to capital to stop American democracy
when have I cheered or said any of that? never. delusional, as usual.
Well, I would venture to guess 100% of the Jan 6 traitors would applaud your statement
January 6th is a completely different issue than the vaccines that United forced on almost 100k people
I would say anti-vax and anti-democracy thinking is pretty similar.
And united never put a gun to anyone’s head and told them they had to get it. They just said get it or get lost.
I know zero people who are anti-democracy. That being said, the United States is a constitutional federal republic.
Calling people who broke some windows and took a walk “traitors” is laughable.
Are you talking about BLM?
Hey Chad, where did you buy your Biden “I did that” stickers? Now that Biden has heroically lowered gas prices I want to plaster a bunch all over gas pumps
They are still much higher than when he took office and they are rising again.
way to change the subject. Joe Biden has dementia.
The unemployment rate was also almost double what it is now. Trump lost jobs.
While I agree with you on freedom of choice. Mr. Kirby stated that he didn’t want to see another employee die from the effects of the virus. To my knowledge no one at UAL has perished as a result from complications of COVID.
We can disagree with his decision re: civil liberties, but I can’t fault him for his desire.
I am a fan of how he is running United in terms of aggressiveness.
Desire is an odd word to use when discussing the coerced vaccine. Of course most of United’s workforce wasn’t at the liberty to refuse the vaccine versus supporting their families. Either way, where does the desire stop? If the WHO and other power structures are successful with implementing vaccine passports for international travel, does Kirby sign up first, too? Civil liberties be damned, too?
Aircraft do not have nationalities. The 787 is no more and no less American than the A350. Both rely on global supply chains. Both source plenty of components, at all tiers of production, from U.S. suppliers. Final assembly is but one (small) part of the overall process of manufacturing an airliner.
Yea but the profits of one airplane goes to a company that doesn’t pay American tax, and the other… well… goes to airbus
To the extent there is profit at the airframer level. It’s low margin, especially in light of the complexity.
The best place to sit in the aerospace value chain from a EBITA perspective is Tier 2 or Tier 3 supplier role.
Did he also mention that the 787 is the best aircraft possible for UA’s missions and needs? Because to the end user, the passengers and flight crew, that’s what really matters.
I get the feeling that this guy is simply using his platform and position as UA’s CEO to gather soundbites and to run for president one day.
He didn’t need to say that, and the remarks are short-sighted, and insincere. UA, like the rest of the industry, got huge bailouts from taxpayers, in the wake of 9/11 and again as a consequence of the pandemic, so buying American, I guess is a jingoistic, paper-thin way of saying thank you but this is 2022, not 1942.
Kirby has a PhD in BS. He may even get a Noble Prize for that skill.
assume you mean a signing ceremony… or perhaps they did burst out into song as well
Patriotism is the last refuge of the scoundrel
Every time I come back to read your blog, I regret reading the comments. The Chad’s and the ECH’s of the world are always there with their unique perfume.
‘Merca
Ok snowflake.
It’s easier to fool people than to convince them that they have been fooled.. Such a sad state of affairs that the truth, and the pursuit of it, plus civil liberties, are so bothersome to so many.
It would be nice if you would fight and speak up against the Great Reset, and countless other issues, too. Hard to understand how it’s all a joke to y’all. https://childrenshealthdefense.org/defender/great-reset-power-grab-social-credit-cola/
Loyalty? From kirby? That’s rich. Thanks for the laugh, Matthew.
I feel that patriotism each time I bite into the pre landing microwave cheeseburger with a side of packaged processed muffin. “Only in America.”
Instead of waiving the flag, Kirby is hiding behind it.
-Bailouts in 2002 and 2020.
-Billion$ poured into airports infrastructure with Uncle Sam grants that benefit the airlines; yet only a handful of US airports have direct train connections to benefit the PAX.
-A god awful, mismanaged airframe manufacturer who f**ks up both civil & military deliveries and still cries to Congress for technical waivers.
Sounds less like “free enterprise” and more like a “free ride” at the tax payer’s expense!!!!
Though i pretty much always am turned off by his (kirby)bravado; he has exhibited many true leadership traits. Loyalty you mention. But there are others that i see at least in his public facing comments.
He understands that he has 4 constiuancies he must keep in equilibrium to run the company successfully. The Public including Government, The Passengers, The Employees, and the Stockholders. Oscar understood this, Jeffy definately did not.
Patriotism and loyalty?
I suppose you have to explain ordering second rate planes somehow.
Why United Airlines stock fell 7% despite massive Boeing deal https://finance.yahoo.com/news/why-united-airlines-stock-fell-7-despite-massive-boeing-deal-111532341.html
Understandable. Airbus vs Boeing that’s always going to be the question.