United Airlines CEO Scott Kirby disputes Rolls-Royce engine deal, putting 45 Airbus A350s in limbo
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United Airlines CEO Scott Kirby has put Rolls-Royce in his 'doghouse' over a $175 million contractual dispute that threatens the carrier's order for 45 Airbus A350s. The airline has removed the A350 from its near-term delivery schedule, while Rolls-Royce has terminated the agreements and both sides claim damages.
Key Facts
- United Airlines paid Rolls-Royce a $175 million commitment payment in 2017 under agreements signed in 2010.
- In December 2025, United said Rolls-Royce breached the agreements and demanded repayment of the $175 million plus escalation.
- Rolls-Royce terminated the agreements, asserting United breached its obligations, and United disputes that termination.
- United has removed the A350 from its near-term expected aircraft deliveries schedule, though the order remains a long-term commitment.
Contract Dispute
United Airlines entered into agreements with Rolls-Royce in 2010 covering engine purchases and maintenance services for widebody aircraft. In 2017, United paid Rolls-Royce a $175 million commitment payment under those agreements. The dispute escalated in December 2025, when United said Rolls-Royce had breached the agreements and demanded repayment of the $175 million plus contractual escalation. Rolls-Royce did not make the payment and instead terminated the agreements, asserting that United had breached its obligations. United disputes that termination, with both sides claiming the other owes damages.
A350 Program Impact
Airbus has no alternative engine supplier for the A350, meaning United cannot keep the aircraft but switch to another powerplant. United has effectively removed the A350 from its near-term expected aircraft deliveries schedule. The type no longer appears in the delivery timeline through the end of the current planning horizon, even though the order remains listed as a long-term commitment.
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United Airlines CEO Scott Kirby disputes Rolls-Royce engine deal, putting 45 Airbus A350s in limbo
