- IAG, one of the largest airline groups, announced on Tuesday it would buy 200 Boeing 737 Max jets.
- It’s the first large public purchase since the Max was grounded worldwide after the second fatal crash within several months.
- Boeing has taken a reputational hit since. But the IAG deal is a boost for the company, which is widely seen as being on the back foot.
- Read more stories like this on Business Insider.
PARIS, FRANCE – The parent company of British Airways said on Tuesday that it is buying a new fleet of Boeing 737 Max jets – the first big-ticket order for the plane since it was grounded around the world after two fatal crashes.
International Airlines Group (IAG) announced at the Paris Air Show that it would buy 200 of the jets in a deal worth about $US24 billion.
Willie Walsh, the CEO of IAG, said the company was “pleased” with the decision and that the Max would “be a great addition to IAG’s short-haul fleet.”
IAG is the parent company of British Airways, Aer Lingus, Iberia, and Vueling.
The company said it would buy a combination of the 737 Max 8 and the larger 737 Max 10.
Kevin McAllister, the president and CEO of Boeing Commercial Aeroplanes, said Boeing was “truly honored and humbled” that IAG placed its “trust and confidence and the 737 Max.”
He said the order was a vote of confidence in “the people of Boeing and our deep commitment to quality and safety above all else.”
A Boeing spokesman confirmed to Business Insider that it was the first intent to order Boeing 737 Max jets since March.
Boeing has faced a reputational crisis as a result of the fatal crashes, which took almost 350 lives.
The first 737 Max, operated by Lion Air, crashed in March 2018, and an Ethiopian Airlines 737 Max crashed in March 2019.
The planes have been grounded around the world since the crash and will remain grounded until the US Federal Aviation Administration approves a pending software update.
The 737 Max crisis has cast a shadow over Boeing at this year’s Paris Air Show. The company has not announced any new planes – unlike its rival, Airbus – and started slowly on Monday with no new plane orders.
But it also announced on Tuesday that IAG committed to buying five of its 787-9 Dreamliners, valued at $US1.5 billion, and that Korean Air had committed to buying 30 787 Dreamliners.
IAG also announced a much smaller order on Tuesday for 14 Airbus A321XLR jets, which Airbus announced yesterday.
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