IAG Converts 10 Airbus A320neo Options into Firm Orders
The International Airlines Group (IAG) has converted 10 Airbus A320neo options into firm orders, including the option to convert certain aircraft into A321neos. The aircraft will be delivered in 2028, and will replace A320ceos within the Group’s airlines.
On Friday (June 30, 2023), the International Consolidated Airlines Group (IAG) announced the conversion of 10 Airbus A320neo options into firm orders, including the option to convert certain aircraft into A321neos. The aircraft will be delivered in 2028, and will be used to replace A320ceos within the group’s airlines. At list prices the A320neo is approximately $120 million and the A321neo is $140 million. However, IAG has negotiated a substantial discount.
In Friday’s announcement, IAG’s Chief Executive Officer, Luis Gallego, said,
“These latest generation aircraft are more cost and fuel efficient than those they will replace and will help towards our commitment to achieve net zero carbon emissions by 2050.”
IAG will announce the engine selection for the aircraft at a later date. The Group has a range of financing options and will choose the most appropriate financing source closer to delivery time. The converted firm orders are consistent with the company’s previously communicated CAPEX plans.
Source: IAG/LEI: 959800TZHQRUSH1ESL13