British Airways owner signs up for 200 Boeing jets, including the 737-Max model that is currently grounded worldwide
Plane maker Boeing has landed a huge order from British Airways parent International Airlines Group (IAG) for 200 planes, as it looks to bring the fight to arch-rival Airbus at the Paris Airshow.
IAG signed a letter of intent with Boeing for 200 737 aircraft to join its fleet. The mix of 737-8 and 737-10 aircraft would be delivered between 2023 and 2027.
The move, still subject to formal agreement, is a vote of confidence in US-based Boeing, given the controversy and reputation damage that has engulfed it since its 737-Max fleet was grounded globally in March.
Boeing’s boss apologised for the grounding at the aviation event’s opening day.
Read More: Boeing 737-Max unlikely to return to service ‘until after August’
IAG chief executive Willie Walsh said: “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”.
“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”.
The list price is approximately $117m for the Boeing 737-8 and $131m for the 737-10, potentially valuing the deal above $20bn.
However price concessions commonly applied by plane makers across the industry mean IAG will eventually pay less.
Boeing earlier inked a deal with Korean Air to buy 20 of the US company’s 787 Dreamliners, worth $6.3bn at list prices.
Read More: Airbus wins orders over Boeing at Paris Airshow
Airbus had taken an early lead in orders at the event with a $6bn deal with Philippines airline Cebu Air for 36 planes.
The Toulouse-based jet maker also struck a deal to sell a further 30 A320neo aircraft to Saudi Arabian Airlines, worth $3.3bn at list prices, while Malaysia’s budget airline Air Asia altered its order for 253 A320neo orders to the larger A321neo model.
International Airlines Group did give some love to Airbus too and ordered eight A321XLR for its Iberia brand and six for Dublin-based Aer Lingus, plus 14 options.