Enrique Dupuy, the finance chief of International Airlines Group (IAG), formed by the merger of British Airways and Iberia, has indicated that the two airlines plan to order aircraft together in a bid to boost buying power. IAG has placed its first order for eight Airbus A330-300s to replace up to 16 of Iberia’s long-haul A340 aircraft. Delivery is planned for the third quarter of 2012.
Iberia has traditionally favoured leasing aircraft, and has most of its A340 fleet on operating leases that expire between the next six to seven years. BA however has traditionally opted to purchase new aircraft outright. It is not yet know which approach the joint company will take and it will likely depend on the type of aircraft ordered.
“We’re trying to get the best practice out of the different cultures of each company,” said Dupuy. “If we find there are some specific aircraft we have to finance on a more flexible basis, we will use Iberia’s experience, but if we feel more comfortable owning them, then we’ll use the more traditional ownership structure BA has used.”
The replacement of Iberia’s ageing fleet, which includes 18 twelve-year-old A340-300s and 17 four-and-a-half year old A340-600s, will take priority over BA’s fleet replacement as the lease model offers greater flexibility to replace them. New aircraft orders for the A350 and the 787 will be addressed later.