Paris Surprise: Boeing Lands Blockbuster 737 MAX Order, the First Since Jet’s Grounding
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
In a surprise development at the Paris Air Show, Boeing announced that it has received a huge new order for its troubled 737 MAX aircraft. That came from International Airlines Group (IAG) CEO Willie Walsh, who announced late Tuesday that his organization intends to purchase 200 737 MAX jets.
According to a statement, the two companies had already been in discussions about the order and signed a letter of intent for the order at the air show. The order includes both the 737 MAX 8 and the 737 MAX 10, with IAG saying it expects to operate the aircraft with both LEVEL and Vueling.
The deal would be valued at more than $24 billion at list prices, though airlines typically negotiate steep discounts on large orders. However, given Boeing’s woes with the MAX, speculation will likely focus on just how big of a discount IAG received on its order.
“We’re very pleased to sign this letter of intent with Boeing and are certain that these aircraft will be a great addition to IAG’s short-haul fleet,” Walsh said in a statement. “We have every confidence in Boeing and expect that the aircraft will make a successful return to service in the coming months having received approval from the regulators.”
Walsh and IAG’s order on Tuesday is the first order of the MAX aircraft since the Ethiopian Airlines 737 MAX aircraft crashed in February, killing all passengers on board. Since that incident — which followed the crash of a Lion Air 737 MAX in late 2018 — all 737 MAX aircraft have been grounded worldwide.
Boeing is reportedly close to a fix for the aircraft, but it needs to be approved by regulators before being approved to reenter service.
IAG placed another order on Tuesday, but with rival manufacturer Airbus. That order consisted of 14 Airbus A321XLR aircraft, which will be heading to both Aer Lingus and Iberia.
Given the negative attention surrounding the MAX, it’s likely that Walsh got a steal of a deal on the price for the 200 737 MAX aircraft ordered on Tuesday.
The order is the largest for Boeing at the Paris Air Show, which to this point, had been highlighted by a 787 Dreamliner order from Korean Air.
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees