United has unveiled deals with Airbus and Boeing that could add up to 150 widebodies to the carrier’s fleet.

Under agreements announced early this morning, United will place firm orders for 25 Airbus A350-900s and 25 787-8s. Purchase rights for 50 more of each type were also included. The carrier said it has flexibility built into the agreements for deferrals and substitution within the A350 and 787 families.

The deals come about six months after United issued a request for proposals to replace its aging fleet of 24 747-400s and 35 767-300s. Deliveries are scheduled to begin in 2016 and the firm orders should be fulfilled in 2019. The airline has indicated that the A350s will replace the 747s while the 787s will succeed the 767s.

“The breadth in size and capabilities of the different aircraft models ensure the company has the right aircraft for the right market throughout the fleet replacement cycle,” United said in a release.

United CEO Glenn Tilton noted the orders align with the airline’s approach to capacity discipline. The firm orders will have about 19% fewer seats than the aircraft they replace, and will reduce systemwide widebody seat count by about 10%. The A350s will be powered by Rolls-Royce Trent engines, while a decision has not yet been made about the 787 engines.

“The new aircraft will open up new revenue opportunities for United as the smaller size, longer range, and lower operating costs of these aircraft allow the company to profitably serve a broader range of international destinations,” said the airline. United estimates that the A350 has a range 11% greater than its current 747s, and the 787 has 32% more range than its 767s.

The financial goals set out in the RFP have been achieved, according to United’s CFO Kathryn Mikells. “Our decision to move forward aggressively at the bottom of the business cycle clearly benefited us…we secured the right aircraft and the right deal for United,” she said. United had stressed that the order could not damage its efforts to improve liquidity and repair its balance sheet.

“The orders require minimal capital over the next few years, but ensure we will have the right planes to strengthen our global network over the next decade,” Mikells said. The outlay for United will be $60 million over the next three years, and $152 million over the next five years. Payments will ramp up as the aircraft are delivered.

Image: United