LONDON – International Airlines Group (IAG) has placed a combined order for 50 Boeing 737-8-200 and 737-10 aircraft. The agreement also has an option for an additional 100 airframes.
The orders are scheduled for between 2025 and 2028.
“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,” said Luis Gallego, IAG´s chief executive.
The list price for a B737-8200 is approximately US$120 million and the B737-10 list price is US$130 million. However, IAG has negotiated a substantial discount from the list price.
Surprise Investment
The news comes several years after IAG made the shock announcement at the Paris Air Show in 2019 of a signed Letter of Intent for up to 200 aircraft.
It is currently unknown which of IAG’s airline(s) will receive the new aircraft. According to planespotters.net, all of IAG’s airlines (except Iberia Regional) already have a developing or developed fleet of Airbus A320 NEO family aircraft. Presumably, one airline will have their NEOs transferred elsewhere with the MAX replacing them.
Another speculated use for the order is they’ll be used for the newly formed BA Euroflyer operation at London Gatwick.
It would not be the first time British Airways has used a Boeing fleet at Gatwick. Before British Airways went fully Airbus on their short-haul network, their Gatwick base used Boeing 737 Classic aircraft.
IAG says the aircraft will be used for fleet renewal. Additionally, the order is subject to shareholder approval.
Sustainability Strategy
IAG has previously stated they want to achieve net-zero carbon emissions by 2050. This order is seen to be part of their commitment to get there.
“With the selection of the 737-8-200 and larger 737-10, IAG has invested in a sustainable and profitable future, as both variants will significantly lower operating costs and CO2 emissions,” said Stan Deal, president, and CEO of Boeing Commercial Airplanes.
“Today’s agreement for up to 150 airplanes, including 100 options, is a welcome addition of the 737 to IAG´s short-haul fleets and reflects our commitment to support the Group’s continued network recovery and future growth with Boeing’s unrivaled family of airplanes.”
When compared to the recent Boeing 737NG aircraft, the 737 MAX is 14% more fuel-efficient. Thanks to interim developments, the MAX is 20% more efficient than the original 737NG aircraft.
