The International Airlines Group (IAG), which controls several airlines such as British Airways and Iberia, announced a firm order for 50 737 MAXs and 100 more options with Boeing.
Initially, the deal includes 25 737 MAX 8200 (high-density version) and 25 737 MAX 10, the largest variant in the family, with a capacity of up to 230 seats.
The aircraft will be delivered between 2023 and 2027 and “can be used by any airline in the Group for fleet replacement,” the company said in a statement.
“The addition of new Boeing 737s is an important part of IAG’s shorthaul 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,” said Luis Gallego, IAG’s chief executive.
The IAG further said it obtained a substantial discount from the list prices of the 737 MAX 8200 ($120 million) and 737 MAX 10 ($130 million), but did not disclose transaction amounts.
The holding company that controls British Airways, Iberia, Aer Linus, Vueling and Level had already signed a commitment with Boeing in June 2019, when the 737 MAX was already grounded due to safety concerns. The deal still has to be approved by shareholders.
The signal that IAG got lower prices for the 737 reveals that Boeing has been taking advantage of its aircraft inventory to reach more advantageous deals with Airbus customers.
The European airframer, on the other hand, has a huge queue for its jets as its assembly lines in preparation for production ramp up.