United's stalled A350 order thrown into doubt by Rolls-Royce engine row

By Rajesh Kumar Singh and Tim Hepher

CHICAGO, Feb 13 (Reuters) - United Airlines has injected new uncertainty into its long-delayed Airbus A350 order after disclosing a dispute with engine maker Rolls-Royce,

the latest twist in one of the industry's longest-running jet procurement sagas.

The A350 order dates back to 2009, a year before United merged with Continental Airlines, which was a champion of Boeing and with which it had exclusive ties. The A350 deal was later restructured but has been repeatedly deferred or changed.

Now, in a regulatory filing late on Thursday, the airline said it is in a dispute with engine maker Rolls-Royce and gave investors no timetable for when the planes would arrive.

Since Britain's Rolls-Royce is the only company that makes engines for the A350, the dispute raises a question mark over whether United will be able to bring the jets into service.

In the filing, United continued to show its 45 Airbus A350 jets on its books for arrival after 2027, but offered no expected delivery timetable. A previous annual filing had pointed to expected deliveries beyond 2026.

ENGINE CONTRACT DISPUTE

The carrier said it had signed a long-term contract with Rolls-Royce in 2010 to buy engines and maintenance services, and paid the British engine maker $175 million upfront in 2017.

It claimed that in December last year, Rolls-Royce breached the terms of their contract, prompting United to demand its $175 million back, plus an additional amount. Rolls-Royce denied breaking any contract.

According to the U.S. carrier's version of events, Rolls-Royce refused to pay and argued United was at fault. Both companies are now arguing the other side owes them money, it added.

A Rolls-Royce spokesperson said the company had complied with its obligations under agreements dating back to 2010, but could not comment further due to legal proceedings.

Rolls-Royce called United a "valued customer" and said it looked forward to resolving what it called a "historic issue" and strengthening the partnership. "We're aware of the issue and are confident in our position," the spokesperson said.

THREE-WAY PRESSURE POINT

Analysts say multi-billion-dollar jet deals involve complex three-way ties between the airline, the planemaker and the engine supplier.

In a likely reference to Airbus, United said it is weighing what the dispute could mean for other parties.

Airbus declined to comment. It continues to show the stalled order on its published backlog in what industry sources describe as a routine move to safeguard any contractual rights.

A United spokesperson declined to comment beyond the filing.

United Airlines is a major buyer and has been a battleground over the years between Airbus and Boeing.

In September 2025, Chief Executive Scott Kirby told Reuters the airline expected to announce its decision on the A350 order later that year.

The airline has said a decision on the aircraft is tied to its long-term widebody replacement needs, particularly the need to eventually replace older Boeing 767s and 777s.

But the repeated deferrals have fueled speculation United could cancel the order or convert it into other Airbus aircraft, such as from the A321neo family that it has bought in large numbers.

(Reporting by Rajesh Kumar Singh and Tim Hepher in Paris; Editing by Chris Reese)