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IAG to order up to 150 737 Max

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IAG to order up to 150 737 Max

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Old 19th May 2022, 10:57
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IAG to order up to 150 737 Max

Flight Global reporting that IAG is ordering 150 737 Max across two variants

19th May 2022
British Airways and Iberia parent company IAG has agreed to order up to 150 Boeing 737 Max jets.

The order will comprise 25 737 Max 10 variants, plus 25 of the high-density 737 Max 8-200.
https://www.flightglobal.com/airline...148714.article

JAS
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Old 19th May 2022, 11:28
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Downgrade.
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Old 19th May 2022, 12:31
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Now that the problems have been addressed and solved, why not?
Speculation: Boeing likely offered a nice discount/package deal to get a major order from a major carrier.
That (order) would be a step in re-establishing confidence in the product.
Would be interested to hear from pilots what the new/conversion training improvements are.
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Old 19th May 2022, 13:10
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No really choice if they want delivery this decade.

Airbus are delivering about 500 aircraft a year but have over 7000 aircraft on order. Accepting they are aiming to ramp up production, but they are being cautious.

Do the maths.
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Old 19th May 2022, 15:17
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Rumour is that Boeing is so desperate for orders that the Max is going for about a 25% discount over pre crash valuations. With the huge impairment costs of the Max fiasco, the airplane will never be profitable and the company only cares about short term cash flow to keep the illusion that Boeing Commercial is still a viable company so the stock price doesn’t crash.

But not to worry Boeing won’t crater until after the current executives have cashed out their juicy bonuses.
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Old 19th May 2022, 15:31
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...and if the Starliner doesnt go well tonight, then the space division of Boeing is well and truly up a certain creek, without a certain instrument!
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Old 19th May 2022, 15:42
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Originally Posted by ATSA1
...and if the Starliner doesnt go well tonight, then the space division of Boeing is well and truly up a certain creek, without a certain instrument!
Nah, no worries. There's always the Defiant helicopter to fall back on......
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Old 19th May 2022, 15:57
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Tbh as long as the US can print money out of thin air there will always be enough for Boeing.

To get back to the topic at hand it would be really interresting to know what kind of discount has been ironed out. But even so I wonder what will the TCO be over the whole life of the aircraft.
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Old 19th May 2022, 17:40
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They are in a very tight corner now. No certainty of whether Max10 and Max7 will make the end of year deadline for certification before EICAS becomes a requirement for all new approvals. Congress might normally have extended that deadline for them but given their record in recent years putting your signature on that type of waiver is a lot riskier than it used to be. Airbus are going to hit 89 narrawbodies per month production in coming years, that drives down costs enormously.

Still no sign if when 787 deliveries will resume, another FUBAR made there in recent days with incomplete documentation submitted to the FAA. 777X EIS delayed another year to 2025, meaning it will be 6 years late at least. They lowballed bids on fixed price military contracts which is hurting them a great deal on the KC-46, VC-25 and T-7. USAF is going cold and reducing orders on the F15-EX.

Because they messed up the 787 program so badly it'll never make money, now potentially the MAX is in the same boat. Penny wise, pound foolish as the saying goes.

As for IAG, order makes sense. Leveraging both manufacturers is sound for future orders. Wonder where they'll end up, those are LCC targeted variants.
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Old 19th May 2022, 19:40
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So 50 less than the LOI in 2019. And the 737-8200 order points to “Ryanair-ization” of some of the IAG carriers.
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Old 19th May 2022, 19:56
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Originally Posted by Big Pistons Forever
Rumour is that Boeing is so desperate for orders that the Max is going for about a 25% discount over pre crash valuations. With the huge impairment costs of the Max fiasco, the airplane will never be profitable and the company only cares about short term cash flow to keep the illusion that Boeing Commercial is still a viable company so the stock price doesn’t crash.

But not to worry Boeing won’t crater until after the current executives have cashed out their juicy bonuses.
More than 25% discount!!! I don’t know the exact figure RYR paid for 737-8200 but it was at least 65% off.
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Old 19th May 2022, 20:30
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Originally Posted by Just a spotter
Flight Global reporting that IAG is ordering 150 737 Max across two variants

19th May 2022
https://www.flightglobal.com/airline...148714.article

JAS
They announced this over 18 months ago.

https://www.theguardian.com/business...g-737-max-jets

Hardly Rumour or News. Yawn.
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Old 19th May 2022, 20:33
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Originally Posted by Auxtank
They announced this over 15 months ago.

https://www.theguardian.com/business...g-737-max-jets

Hardly Rumour or News. Yawn.
That wasn't a firm order, only an LOI. These 50 are firm.
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Old 19th May 2022, 20:39
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Originally Posted by Una Due Tfc
That wasn't a firm order, only an LOI. These 50 are firm.
LOI's these days form the basis of intent so again - with the World rushing to get in to the Debt Lane (with the rest of us) - so hardly news.
Just another Fail lined up like ducks in the sights. Another front-sided re-finance and Juggle/ Strip Show - Long Finance Hit and Miss card shuffle.

Thank God BA ain't a Flag Carrier anymore.

Sad that they aern't,
But glad that they aern't.
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Old 19th May 2022, 21:34
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Originally Posted by oceancrosser
So 50 less than the LOI in 2019. And the 737-8200 order points to “Ryanair-ization” of some of the IAG carriers.
Maybe, though just because IAG have an aircraft certificated for 200+ pax, with the extra doors, doesn't necessarily mean they will be configured with that many seats.
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Old 20th May 2022, 03:38
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Originally Posted by AIMINGHIGH123
More than 25% discount!!! I don’t know the exact figure RYR paid for 737-8200 but it was at least 65% off.
The 65 % is from the list price which basically no serious airline pays. My quote of a 25% discount is over the average amount airlines were actually paying for the Max. RYR is an especially advantageous position because of the size of their 737 fleet and therefore the amount of future orders. There is no doubt that they were able to drive a price point that would not have been attainable before the Max crashes and subsequent grounding.
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Old 20th May 2022, 07:54
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Originally Posted by Big Pistons Forever
The 65 % is from the list price which basically no serious airline pays. My quote of a 25% discount is over the average amount airlines were actually paying for the Max. RYR is an especially advantageous position because of the size of their 737 fleet and therefore the amount of future orders. There is no doubt that they were able to drive a price point that would not have been attainable before the Max crashes and subsequent grounding.
That 65% wasn’t from list price either!!! They paid less than they did for the 737-800. Began with a 2………
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Old 20th May 2022, 10:56
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Originally Posted by Auxtank
LOI's these days form the basis of intent so again - with the World rushing to get in to the Debt Lane (with the rest of us) - so hardly news.
Just another Fail lined up like ducks in the sights. Another front-sided re-finance and Juggle/ Strip Show - Long Finance Hit and Miss card shuffle.

Thank God BA ain't a Flag Carrier anymore.

Sad that they aern't,
But glad that they aern't.
Could we have that again but in English please? For those of us who don't speak corporate buzz word.
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Old 20th May 2022, 12:14
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Originally Posted by HOVIS
Could we have that again but in English please? For those of us who don't speak corporate buzz word.
Fully agree - the only expression I really understood was "Strip Show"!

Jack
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Old 20th May 2022, 12:15
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Originally Posted by Una Due Tfc
Wonder where they'll end up, those are LCC targeted variants.
I fear they will end up on mainstream, high fare, foodless, business flights from Heathrow, with LCC-pitched seats at the front sold as "Club" because the middle seat is not booked - unless they declare because of an operational issue (alias management cheeseparing) today they are now going to seat you all 3-across to overcome a cancellation.

Some beancounter in Madrid thinks they can get away with this.
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