International Airlines Group (IAG.L), the parent of British Airways Plc and Spanish flag-carrier Iberia Lineas Aereas de Espana S.A., has entered into an agreement with Boeing for new longhaul aircraft for the group's fleet. IAG intends to convert 18 existing Boeing 787s options into firm orders for British Airways. They would be used to replace some of the airline's Boeing 747-400 aircraft between 2017 and 2021.
For Iberia, IAG has inked a deal with Boeing to secure commercial terms and delivery slots that could lead to an order for Boeing 787s. The company said that firm orders would be made only when Iberia has restructured and reduced its cost base and is in a position grow profitably.
British Airways' 787s would be powered by Rolls-Royce Trent 1000 engines, with the engine order including a comprehensive maintenance package with total care agreement. IAG's Chief Executive, said: "British Airways has 24 Boeing 787s on order already and we plan to boost this by a further 18 aircraft by exercising our options."
British Airways has 118 wide-bodied longhaul aircraft in its fleet with 42 aircraft (12 A380s, 24 B787s, six B777-300ERs) already ordered. Iberia has 31 wide-bodied longhaul aircraft in its fleet with six A330 aircraft already ordered. The fleet order is subject to approval by IAG shareholders.
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