Boeing Secures $10 Billion Aircraft Order from UK-Based IAG

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The United States has announced a major $10 billion aircraft deal involving Boeing, with the order coming from Britain’s International Airlines Group (IAG). The agreement was confirmed by US Commerce Secretary Howard Lutnick during the signing of a bilateral trade deal between the US and the UK on Thursday. IAG, the parent company of British Airways, Iberia, and Aer Lingus, plans to purchase around 30 Boeing 787 Dreamliners as part of its fleet expansion strategy. The order is part of a split purchase that also includes a similar number of long-haul jets from Airbus, including the A350 and A330neo.

Strategic Fleet Expansion Amid Market Challenges

The announcement of the aircraft order comes at a pivotal time for Boeing, which is currently ramping up production of its 737 MAX to 38 jets per month after facing quality control issues and leadership changes. According to Bloomberg News, IAG is also negotiating options for additional aircraft purchases beyond the confirmed 30 planes. The deal adds to Boeing’s existing backlog of 149 aircraft ordered by UK-based buyers, valued at over $12 billion before accounting for potential discounts.

Lutnick refrained from disclosing further details about the agreement, stating that the airlines would provide more specifics in their upcoming quarterly earnings report, set to be released by IAG on Friday. Industry sources indicate that IAG’s decision to split the order between Boeing and Airbus reflects a balanced approach to fleet modernization, especially amid heightened trade tensions between the US and the EU.

Implications for US-EU Trade Relations

The timing of the order is noteworthy, given the ongoing trade tensions between the US and the European Union. The EU had previously warned of potential tariffs on Boeing aircraft if broader trade negotiations with Washington fell through. As Boeing and Airbus continue to vie for market share in Europe, this deal serves as a critical development for Boeing, providing a substantial boost to its order book while reinforcing trade ties with the UK amid evolving geopolitical dynamics.