International Airlines Group (IAG) has agreed to convert ten Airbus A320neo aircraft purchase options, originally announced in September 2022, into firm orders. The company also stated that it is considering replacing some of these orders to receive A321neo aircraft.
In a press release, IAG highlighted that it “has negotiated a substantial discount” on the list prices. It also emphasized that it “has various financing options” and will choose “the most suitable financing source” as the delivery dates approach.
The transaction would have an approximate value of 1.106 billion euros (1.200 million dollars), according to Spain’s National Securities Market Commission (CNMV).
See also: Regulatory Hurdles Loom for IAG’s Second Attempt to Acquire Air Europa
IAG to receive the new A320neo starting in 2028
Deliveries are scheduled to begin in 2028. The aircraft will be used to replace the current A320ceo of any of the airlines that are part of IAG. Aer Lingus, British Airways, Iberia, and Vueling are the holding’s companies operating the type.
“These next-generation aircraft are more cost-efficient and fuel-efficient than the ones they will replace, in line with our commitment to achieve net-zero carbon emissions by 2050”, said Luis Gallego, CEO of IAG.
The A320neo variants (acronym for New Engine Option) were developed from the A320 family. They provide their operators with substantial improvements in terms of fuel savings, reduced greenhouse gas emissions and acoustic impact.
The company has not yet informed which of the two available engine options for the A320neo family (CFM International LEAP-1A and Pratt & Whitney PW1900G) it will select. The chosen engine will be confirmed as the delivery dates approach.
