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IAG Indicates Interest in 200 Boeing 737 MAX Jets

  • IAG Indicates Interest in 200 Boeing 737 MAX Jets

European based International Airline Group (IAG) has signed letter of intent (LOI) to buy 200 Boeing 737 MAX.

This was the most significant deal signed by US aerospace company on Tuesday at the Paris Air Show in addition to a couple of medium size deals, according to airwise.com.

Korean Air and Air Lease Corporation announced commitments for 787 Dreamliners, but late in the day, International Airlines Group (IAG) announced that it had signed a letter of intent to order 200 737 MAX jets.

Aviation experts described the LOI for the B737 MAX as major boost to Boeing after aviation regulators grounded the worldwide 737 MAX fleet after two fatal crashes.

IAG’s is the first tentative order since the aircraft was grounded.

Earlier in the day, Korean Air and Air Lease Corporation announced the airline’s plans to add 30 787 Dreamliners – 10 787-9s and 10 -10s. The agreement includes the lease of a further 10 787-10s from Air Lease. The 20-aircraft order is valued at $6.3 billion at list prices.

Korean Air would introduce the larger 787-10s to augment its current long-haul fleet of 787-9s and 777s.

Air Lease separately announced a commitment to purchase five 787-9s valued at $1.5 billion at list prices.

IAG’s commitment for the 200 737s, a mix of MAX 8s and the larger MAX 10s, is a strong vote of confidence in Boeing from one of the world’s biggest airline groups.

“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,” IAG chief executive Willie Walsh said.

“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,” Walsh added.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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