Boeing Gets Boost With Long-Awaited 737 MAX Deal

Boeing boosted aircraft manufacturers after receiving a significant order for a 737 MAX aircraft from a British Airways owner and losing a series of sales to rival Airbus from longtime customers.

International Consolidated Airlines Group SA, which owns airlines such as BA, Aer Lingus in Ireland, and Iberia in Spain, said it has the option to order 50 Boeing 737 MAX aircraft and buy another 100. I did. IAG's current short-range fleet is almost entirely composed of Airbus aircraft and a small number of Embraer SA jets.

Orders are less than originally planned. Under former CEO Willie Walsh, IAG signed an intention to purchase 200 MAX jets in June 2019. The agreement, though non-binding, was a major coup for Boeing at the time and was seen as a vote of confidence in the aircraft type just months after the MAX was landed after two deadly crashes. 

According to IAG, planes ordered on Thursday will be delivered between 2023 and 2027 and can be used by any airline in the group as part of a fleet renewal program. The deal is priced at $6.25 billion, but the IAG said it agreed to a "significant discount," as is customary for orders for large aircraft.