IAG announces intention to purchase 200 Boeing 737 Max aircraft for $24 billion

Darren Wood
By Darren Wood June 18, 2019 16:06

IAG announces intention to purchase 200 Boeing 737 Max aircraft for $24 billion

International Airlines Group has signed a letter of intent to purchase 200 of Boeing’s currently grounded 737 Max jets in a deal which could be worth more than $24 billion.

IAG, the parent company of Aer Lingus, British Airways, Iberia, Vueling and LEVEL, has a current fleet consisting of almost exclusively Airbus A320 family aircraft. However, IAG CEO Willie Walsh has said the group would consider the 737 Max as part of diversifying its future fleet to spur competition.

In a statement, Walsh said: “We’re very pleased to sign this letter of intent with Boeing and are certain that these aircraft will be a great addition to IAG’s short-haul fleet.

“We have every confidence in Boeing and expect that the aircraft will make a successful return to service in the coming months having received approval from the regulators.”

IAG says it will fly a combination of the 737 Max 8, which seats up to 178 passengers in a two-class configuration, and the larger 737 Max 10 jet, which can accommodate as many as 230 passengers.

The airline did not disclose a specific split between the two Max models, though it anticipates deploying the aircraft at a number of the group’s airlines including Vueling and LEVEL.

“We are truly honoured and humbled by the leadership at International Airlines Group for placing their trust and confidence in the 737 Max and, ultimately, in the people of Boeing and our deep commitment to quality and safety above all else,” said Boeing Commercial Airplanes president & CEO Kevin McAllister. “We are delighted that the IAG team recognized the superior qualities of the 737 MAX and has indicated an intention to return to the Boeing 737 family. We look forward to building on our long-standing partnership with IAG for many years to come.”

 

Darren Wood
By Darren Wood June 18, 2019 16:06