Deal Includes Options for One-Hundred Additional Planes

IAG, the parent company of British Airways, has finalized an order for up to one-hundred-fifty, Boeing 737 MAX jets. The confirmed order is for 25 of the high density Max 8-200 variant and 25 of the stretched Max 10, with options to purchase an additional one-hundred of Boeing’s most popular airliner family. 

Deliveries are scheduled to begin in 2023 and continue through 2027, with any exercised options available from 2025 through to 2028. The aircraft are to be available to any of IAG’s subsidiary airlines, including: British Airways, Iberia, Aer Lingus and Vueling. No decision has yet been announced as to how the new aircraft will be distributed among the aforementioned. 

IAG initially announced its intention to purchase up to two-hundred, 737 Max aircraft at the 2019 Paris Air Show. The Memorandum of Understanding (MoU) between the company and Boeing was the first significant commitment for the 737 Max after the worldwide grounding of the type subsequent two highly-publicized accidents. 

IAG claims it has negotiated a significant discount on the order’s $6.25-billion list price, and while the the majority of commercial aircraft orders are subject to some degree of discount, analysts posit the discount reflects Boeing’s willingness to narrow short-term profit margins for purpose of imparting momentum into its troubled, 737 MAX program. 

IAG CEO, Luis Gallego, says of the order, “The addition of new Boeing 737s is an important part of IAG´s short-haul fleet renewal. 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.”

The Boeing 737 MAX 8-200 is a modified version of the 737 MAX 8, which itself is a smaller version of the 737 MAX; the 200 designation denotes the installation of additional exits, which allow the model up to 200 seats

The 230 passenger, Boeing 737 MAX 10 is the highest capacity iteration of the 737 MAX. Boeing hopes to have the model certified in 2023. 

FMI: www.boeing.com, www.iairgroup.com