The company announced an agreement to buy 50 Boeing 737 MAX airframes, with an option to add 100 more.
Firm Order Split Between 737 MAX-8 200 and 737 MAX-10
IAG’s order will be divided between two MAX variants. The company will take 25 MAX-8 200 aircraft, along with 25 737 MAX-10 airframes. The deliveries will take place between 2023 and 2027.
The firm orders from IAG completes a commitment made by former chief executive Willie Walsh. In June 2019, Walsh signed a non-binding agreement to purchase up to 200 737 MAX airframes, even though it was grounded worldwide after two fatal crashes. Although the order falls short of the original handshake deal, it provides a major boost for Boeing as the Chicago-based aerospace giant is ramping up production to meet international demand.
While the 737 MAX has a longer range compared to other narrowbody aircraft, U.S. flyers won’t see them on trans-Atlantic routes. The company plans to use them for shorter routes within the European region.
“The addition of new Boeing 737s is an important part of IAG´s shorthaul fleet renewal,” IAG chief executive Luis Gallego said in a press release. “These latest generation aircraft are more fuel efficient than those they will replace and in line with our commitment to achieving net zero carbon emissions by 2050.”
IAG did not announce which airlines would receive the new aircraft once they enter service. The Wall Street Journal reports the order’s list value rings up at $6.25 billion, but IAG notes they received a “substantial discount.” The order is dependent on shareholder approval.
Order Comes as Airlines Ramp Up Fleet Renewal Plans
The IAG order is the latest in a post-pandemic spending spree, as airlines look to upgrade their fleets to improve both fuel efficiency and the customer experience. FlightGlobal reports Turkish Airlines announced they want to purchase six more Airbus A350-900 aircraft for delivery through 2023, which may have been destined for Aeroflot.
Source: frugal travel guy