Stock Groups

IAG in advanced talks on mixed jet fleet renewal -sources -Breaking


© Reuters. FILEPHOTO: Airbus logo seen at the headquarters of Airbus in Blagnac near Toulouse on February 14, 2019. REUTERS/Regis Duvignau


By Tim Hepher

PARIS (Reuters) – Airlines group IAG is in advanced discussions with planemakers about a medium haul fleet shakeup. British Airways may opt for Boeing (NYSE 🙂 and Airbus to upgrade a European fleet narrowbodies. Industry sources claimed that this could be a move by the parent company of British Airways.

Nearly three years ago, IAG shocked the aviation industry when it announced a tentative order for $24 billion in list prices for 200 Boeing 737 MAX aircraft at Paris Airshow 2019, just months after the tragic crashes that claimed the life of the pilot.

Early in the next year, the global epidemic of COVID-19 caused the deal to be canceled. It was originally intended by Willie Walsh as a sign of confidence in Boeing’s future. Later, the airline group began an official contest between Boeing and Airbus.

According to sources, Boeing is likely to maintain a smaller version of its order. This could potentially involve closer to 50 planes rather than 200.

Aer Lingus of Ireland is also part of the multi-national group, as well as narrowbody operators Iberia in Spain and Vueling in Spain.

Boeing and Airbus both declined to comment. IAG has not yet responded to our request for comment.

Boeing’s MAX will be most likely deployed at Vueling, and any future low-cost flights at London Gatwick, if a deal can be reached.

IAG has additional options for ordering Airbus narrowbody aircraft. These are aircraft that have been inherited from other purchases.

Airbus has struggled to secure new orders as it struggles for production slots. After taking the lead in the single-aisle market, Boeing is now behind Airbus.

The sources indicated that Airbus could also order more A350 aircraft if there is progress with negotiations regarding the A350 planes not yet delivered.

Steve Gunning, chief financial officer of IAG, stated to analysts that IAG would need additional short-haul airplanes in the 2024-2025 period. Gunning also suggested that any order might include the 737 MAX.

“We believe that it’s vital to have strong competition among Airbus and Boeing. He also said that the MAX was a great aircraft.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.