United CEO Scott Kirby accused Boeing and Airbus of colluding to avoid investing in new aircraft designs. Kirby argues that limited competition among aircraft manufacturers has left airlines without the aircraft they need. He made the remarks during a podcast appearance with John Collison and Ben Thompson.
Mutual Reluctance
Kirby’s frustration stems from what he described as a mutual reluctance among aircraft manufacturers to commit to new programs. “We need a third aircraft manufacturer, to be blunt,” he said. He believes a new competitor could challenge Boeing and Airbus and force both manufacturers to develop new aircraft.
He explained:
“I think the fundamental problem is Boeing and Airbus have a global duopoly, and they have quietly, not officially agreed, but they have quietly agreed: ‘Neither one of us will invest in new airframes.’”Kirby said he had spent more than two decades calling for a replacement for the 757. Boeing ended production of the 757 in 2004, leaving airlines without a direct replacement for the aircraft’s combination of range and capacity. This created a gap in the medium-range narrowbody market.
Seeking a replacement for its aging 757 fleet, United ordered 50 A321XLRs in December 2019. Kirby describes the A321XLR as a direct substitute for the older aircraft. Airbus advertises the A321XLR with a range of up to 4,700 nautical miles.
The A321neo LR and XLR allow Airbus to serve longer routes with a narrowbody aircraft. However, they cannot fulfill every role currently handled by the 757 and 767. Boeing had plans for a new midmarket jet, widely dubbed the 797. However, the company’s attention shifted to the 737 MAX program, delaying further consideration of the proposed aircraft.
A Third Option
United is not simply waiting for Boeing and Airbus to develop new aircraft. Instead, the airline has taken steps to support a startup that could help address the gap. In April 2025, the airline announced an investment in JetZero alongside a conditional purchase agreement for its aircraft. JetZero is a startup developing blended-wing-body aircraft.
