IAG Finalizes Agreement With Boeing For Up To 150 737 Jets

British Airways owner International Airlines Group (IAG) ordered a combined total of 50 737-8-200s and 737-10s, plus 100 options, from Boeing Co BA.

This announcement finalizes a commitment made by IAG for the 737 at the 2019 Paris Air Show.

The initial 50 jets ordered by IAG have a list price of about $6 billion, but the aviation company said it had negotiated a "substantial discount," wrote Bloomberg.

"The addition of new Boeing 737s is an important part of IAG's short-haul fleet renewal. These latest-generation aircraft are more fuel-efficient than those they will replace and in line with our commitment to achieving net-zero carbon emissions by 2050," stated Luis Gallego, IAG's chief executive.

"With the selection of the 737-8-200 and larger 737-10, IAG has invested in a sustainable and profitable future, as both variants will significantly lower operating costs and CO2 emissions. Today's agreement for up to 150 airplanes, including 100 options, is a welcome addition of the 737 to IAG's short-haul fleets and reflects our commitment to support the Group's continued network recovery and future growth with Boeing's unrivaled family of airplanes," commented said Stan Deal, president, and CEO of Boeing Commercial Airplanes.

Price Action: BA shares are trading lower by 0.49% at $124.90 during the premarket session on Thursday.

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