BA owner IAG signs deal to buy 200 Boeing planes

 

Boeing has received a boots for its grounded 737 Max Jet after AIG, the airline group which owns British Airways  signed a letter of intent to order 200 of the planes. The airline group said it was confident that the Boeing planes would return to service in the coming months. Boeing is currently trying to develop a software fix for 737 Max planes after two deadly crashes.

Boeing still has more than four thousand of them on order, far more than the rest of its range put together. The airlines need the 737 Max due to its high efficiency and low operating costs and its rival Airbus cannot supply the whole market with its A320neo.

The deal if it goes ahead would be worth £19bn at list prices with substantial discount negotiated by IAG’s CEO Willie Walsh.

According to a statement  by IAG, “The planes will be used by IAG’s airlines including British Airway, Vueling and Level,  and the letter of intent was signed at the Paris Air Show.”

Boeing shares rose more than 2.8% after the announcement.

This week a US Federal Aviation Administration official indicated that Boeing 737 Max aircraft could be grounded until the end of  the year – longer than many had been expecting.