IAG in Talks With Airbus, Boeing for Potential British Airways Widebody Order

IAG SA is in discussions with Airbus SE and Boeing Co. for a potential widebody aircraft order, according to people familiar with the matter, as the European airline group looks to modernize its long-haul fleet.

(Bloomberg) — IAG SA is in discussions with Airbus SE and Boeing Co. for a potential widebody aircraft order, according to people familiar with the matter, as the European airline group looks to modernize its long-haul fleet.

As part of the talks, IAG is seeking to replace older 777s at its British Airways unit, said the people, who asked not to be identified discussing confidential negotiations. The group could order 20 or more aircraft, one of the people said.

The contest could go either way with both manufacturers already present in the carrier’s widebody stable. BA operates almost 60 Boeing 777s, along with 37 of the more-modern 787 Dreamliner, and about 13 Airbus A350s, according to the airline’s website.

The discussions are ongoing and no decision is imminent, the people cautioned.

Representatives from IAG, Airbus and Boeing declined to comment.

A growing number of airlines have been ordering planes to renew their widebody lineups as long-haul traffic recovers from the lows of the Covid-19 pandemic. BA, a major player on lucrative North Atlantic routes, is using older planes than some of its competitors. At 14 years, its aircraft average twice the age of those used by UK rival Virgin Atlantic Airways Ltd.

BA’s 777-200s, which make up the bulk of its long-haul fleet, are even older, averaging almost 24 years of age, according to data from aviation tracker Planespotters.net.

IAG has additional deliveries pending from previous orders, and holds unexercised options for about 30 Boeing widebodies, including the coming 777X and a handful of 787s. The airline group also has options to purchase some 50 more A350s.

Airbus and Boeing have struggled to keep up with resurgent aircraft demand, putting pressure on airlines to lock in available production slots.

–With assistance from Clara Hernanz Lizarraga.

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