US aircraft maker Boeing takes big order for beleaguered 737 Max
By Earle Gale in London | China Daily Global | Updated: 2019-06-19 23:06
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Aircraft maker Boeing has sold its first 737 Max planes since deadly crashes appeared to shake the confidence of the world's airlines.
The United States giant said at the Paris Air Show on Tuesday that International Airlines Group, which owns British Airways and several other carriers, intends to buy 200 of its 737 Max aircraft.
Boeing had built 393 of the aircraft as of March 2019 and was understood to have orders on its books for around 4,000 more when the fleet was grounded because of the crashes and orders dried up.
Boeing, the US' largest exporter by dollar value, and International Airlines Group, an Anglo-Spanish multinational company with its headquarters in London, signed a letter of intent for aircraft that should be delivered between 2023 and 2027.
The US broadcaster CBS News said the deal is a vote of confidence in the company, which is trying to win back trust following the crash of an Ethiopian Airlines 737 Max in March and the loss of a 737 Max last year in Indonesia that together claimed 346 lives. The entire fleet of 737 Max aircraft is grounded while an investigation is carried out.
IAG said in a statement it expects regulators to soon allow 737 Max aircraft back into the air.
Willie Walsh, IAG's chief executive, told reporters at the Paris Air Show he has "every confidence" in Boeing and expects the Max to "make a successful return to service in the coming months" after a "rigorous review by the regulators".
"It is a brand that I trust and I will continue to do that," he said.
Boeing Commercial Airplanes CEO Kevin McAllister said the company was "truly honored and humbled by the leadership at International Airlines Group for placing their trust and confidence in the 737 Max".
CBC said the order would be worth $24 billion dollars at normal prices but noted that International Airlines Group, which is also known as IAG, might have struck a preferential deal.
Boeing also announced orders on Tuesday for other jets in its range, including one with Korean Air and another with Air Lease Corporation for a combined 35 long-range 787 jets. And it inked a deal with Amazon Air that will see the freight arm of the ecommerce giant lease 15 Boeing 737-800 cargo planes.
The Financial Times said IAG's order ends a drought for Boeing, which is expected to submit a software fix to US aviation regulators to deal with any problems in the 737 Max's flight-control software, which is thought to have contributed to the fatal crashes.
The BBC reported that shares in Boeing rose by more than 2.8 percent on the back of the announcement.