May 19 (Reuters) – British Airways owner IAG (ICAG.L)announced plans on Thursday to order 50 Boeing (BA.N) 737 MAX jets, reviving part of a stalled bid to replace Europe’s Airbus for some of its short-haul flights while handing support to struggling Boeing.
The order includes 25 of the 737 MAX 10 variant which Boeing is battling to get certified ahead of an end-year deadline.
It also includes 25 737-8200 variants in a deal whose total value is pegged at $6.25 billion at official list prices, before widespread industry discounts that can exceed 50%.
IAG, which also owns Ireland’s Aer Lingus and Spain’s Iberia and Vueling, has a further 100 purchase options as part of the deal, which is subject to shareholder approval.
“The addition of new Boeing 737s is an important part of IAG’s short-haul fleet renewal,” IAG Chief Executive Luis Gallego said in a statement.
Boeing shares rose 0.8% against a slightly weaker market.
IAG stunned the industry when it struck a tentative deal for 200 Boeing 737 MAX jets at the Paris Airshow in 2019 at a time when the MAX was grounded worldwide in the wake of two fatal crashes.
The global outbreak of COVID-19 early the following year caused that deal – intended as a show of confidence in troubled Boeing by then-IAG boss Willie Walsh – to lapse, and the airline group later started a formal contest between Boeing and Airbus. Read more