IAG, the parent company of British Airways, Iberia, Aer Lingus, Vueling, and Level, announced on Thursday, May 19 that it will purchase 50 737 MAX 10 and 737 MAX 8-200 aircraft, and put another 100 on option. This is significantly less than the original order, which was announced at the 2019 Paris Air Show. Then an agreement of intent was signed for 200 aircraft.
The current deal for the troubled aircraft is the first since its operation was banned as a result of two accidents in which 346 people died. The very fact that large airlines have applied for the Boeing 737 MAX shows the entire industry that there is interest in the aircraft, although experts do not exclude the fact of great bargaining and maximum discounts.
Interestingly, IAG airlines only operate Airbus narrow-body aircraft.
A press release issued on Thursday did not indicate which IAG airline would receive the new 737s. In 2019, it was said that the aircraft would join the low-cost brands Level and Vueling. However, since the COVID-19 pandemic, Level has focused on long-haul flights. The order for the 737 MAX 8-200, which is a 200-seat version of the 737 MAX 8, raises the possibility that Vueling will receive the aircraft.
The press release also emphasizes that “the purchase of new Boeing 737s is an important part of the renewal of the holding’s fleet of short-haul aircraft. These latest-generation aircraft are more fuel-efficient than those available today and are in line with our commitment to net-zero carbon emissions by 2050.”
True, there is one “but”. Now the deal needs to be approved by IAG shareholders.