International Airlines Group (IAG) announced today that it had reached agreement with Boeing to order 25 737-8200 and 25 737-10 aircraft, plus 100 options.
(The aircraft are the MAX family type but the manufacturer is quietly phasing out all references to MAX in its literature – order announcements specifically – to 737-8 family aircraft.)
IAG notes that it has “negotiated a substantial discount from the list price” of the aircraft. The 737-8200 list price is approximately US$120 million and the 737-10 list price is US$130 million.
IAG intends for the new aircraft, which will be delivered between 2023 and 2027, to be used by any of its stable of airlines for fleet replacement purposes. The options are available for delivery between 2025 and 2028.
"The addition of new Boeing 737s is an important part of IAG´s short-haul fleet renewal,” said Luis Gallego, IAG´s chief executive. “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."
The announcement finalises a commitment made by IAG for the 737 at the 2019 Paris Air Show and is subject to approval by IAG shareholders. IAG added that it has a range of financing options and will choose the “most appropriate source closer to the delivery time”.
The largest model in the family, the 737-10 seats up to 230 passengers in a single-class configuration and can fly up to 3,300 miles. The fuel-efficient jet can cover 99% of single-aisle routes, including routes served by 757s.
"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 unrivalled family of airplanes.