IAG firms up order for up to 150 Boeing 737 Max

Boeing 737 MAX 10. Image: © Boeing

International Airlines Group (IAG) has converted a Memorandum of Understanding (MoU) that it placed at Paris Air Show in 2019 into a firm order for up to 150 Boeing 737 Max jets.

The confirmed order is for 25 of the high density Max 8-200 variant and 25 of the stretched Max 10, with options to purchase an additional 100 of Boeing’s most popular airliner family. The aircraft are to be available to any of IAG’s airlines, including British Airways, Iberia, Aer Lingus and Vueling, with no decision announced yet as to how many which operator will take. Deliveries are set to start in 2023 and continue through 2027, with any exercised options available from 2025 through to 2028.

IAG initially announced its intention to purchase up to 200 737 Max aircraft at the 2019 Paris Air Show. It was the first significant commitment for the 737 Max after the two fatal crashes and subsequent worldwide grounding of the type. As such it was sold as a sign of confidence in the aircraft whilst Boeing was under intense scrutiny over the cause of the accidents. Whilst the list prices state that this order is worth $6.25 billion, IAG claims it has negotiated a significant discount. It’s worth noting that the vast majority of commercial aircraft orders are subject to discounts of some form.