International Airlines Group (IAG) has signed a letter of intent with Boeing for 200 B737 aircraft to join its fleet which is still grounded and said it is confident it will return to the skies soon.
The LOI is subject to formal agreement. The mix of 737-8 and 737-10 aircraft would be delivered between 2023 and 2027 and would be powered by CFM Leap engines. The deal would normally be valued at more than $24 billion, per list prices.
The airline group said it is anticipated that the aircraft would be used by a number of the group’s airlines including Vueling, LEVEL plus British Airways at London Gatwick Airport.
IAG chief executive Willie Walsh said: “We’re very pleased to sign this letter of intent with Boeing and are certain that these aircraft will be a great addition to IAG’s short-haul fleet.
“We have every confidence in Boeing and expect that the aircraft will make a successful return to service in the coming months having received approval from the regulators.”
IAG has also selected the A321XLR to expand its fleet of highly efficient single aisles with a firm order for 14 aircraft. Of these, eight are destined for Iberia and six for Aer Lingus.
IAG is one of Airbus’s largest customers and this agreement will take the overall order from the group to 530 aircraft. IAG airlines combined operate one of the world’s largest Airbus fleets with over 400 aircraft.
The aircraft will enable Aer Lingus to launch new routes beyond the US East Coast and Canada. For Iberia, this is a new aircraft type that will enable it to operate new transatlantic destinations and increase frequencies in key markets.