IAG Places Major A320 Order
International Airlines Group (IAG), the parent company of British Airways, has secured firm orders and options for up to 220 Airbus A320 family narrowbodies, of which it plans to assign 120 to its Barcelona-based low-fare subsidiary, Vueling. IAG said the new aircraft will allow Vueling to replace some of its existing A320s and expand its business.
The Vueling agreement involves firm orders for 30 A320ceos and 32 A320neos, plus options on another 58 airplanes. The contract calls for delivery to Vueling between 2015 and 2020.
IAG also announced that it has reserved options on another 100 A320neos to satisfy replacement requirements at any of its three subsidiaries—British Airways, Iberia or Vueling.
“Vueling has managed to successfully expand its business profitably by targeting both growth markets and those areas where weak competitors are reducing capacity,” said IAG chief executive Willie Walsh. “These new aircraft will enable Vueling to continue that expansion and replace some of its older fleet with modern, fuel efficient aircraft, leading to further unit cost reductions.
“The benefits that the merger brings to all our airlines are highlighted once again,” he added. “In addition to the Vueling order, we have also been able to secure a further 100 A320neo options for all the airlines in the group.”
The Vueling firm orders remain subject to approval by IAG’s shareholders. IAG said its board would review the order alongside the recent IAG orders for Boeing 787s and Airbus A350s at a shareholder meeting later this year.