International Airlines Group (IAG), the parent company of British Airways has announced a plan to buy 200 Boeing 737 Max aircraft, the first new sale deal for the plane after it was grounded due to safety issues.
The passenger jets will be delivered between 2023 and 2027. The duo revealed a letter of intent of the order at the Paris Air Show. The order comprises of a mixture of 737 Max 8 and Max 10 variant of the model, the cost of which is estimated at $25 billion. According to the International Airlines Group, it has received a substantial discount considering the low sale of the model.
Boeing 737 Max aircraft was grounded after two fatal crashes held involving the flights of Ethiopian Airlines and Lion Air that resulted in the death of 346 people. The aircraft’s software was blamed for the accident.
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, said Willie Walsh, IAG chief executive. 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.
In selecting the 737 MAX, 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 more jumbo 737 MAX 10 jet, which can accommodate as many as 230 passengers.
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, he added.
IAG is one of the world’s largest airline groups with 582 aircraft flying to 268 destinations, carrying 113 million passengers in 2018.