Business

British Airways owner IAG to buy $33b of 737 Max aircraft

LE BOURGET, FRANCE: Boeing won a major vote of confidence at the Paris Airshow on Tuesday as British Airways owner IAG signed a letter of intent to buy 200 of its 737 Max aircraft that have been grounded since March after two deadly crashes.

News of the deal, worth more than US$24 billion (S$33 billion) at list prices, sent shock waves round the world's largest air show, which had struggled to find its rhythm amid the 737 Max crisis and concerns about an economic slowdown.

Airbus, the current supplier of IAG's British Airways and Vueling brands, was stunned by the announcement, which came months after it lost a major British Airways wide-body aircraft order to its US rival.

"We have every confidence in Boeing and expect that the aircraft will make a successful return to service in the coming months," IAG chief executive Willie Walsh said of the 737 Max.

This is the first deal for the plane since its grounding. - REUTERS

BUSINESS & FINANCE