IAG puts in order for Boeing's grounded 787 Dreamliners

International Airlines Group (IAG) announced Thursday it has signed a deal for 18 of Boeing's 787 Dreamliners.

International Airlines Group (IAG) announced Thursday it has signed a deal for 18 of Boeing's 787 Dreamliners.

The agreement shows a sign of faith in the aircraft which has been grounded since January due to battery problems.

IAG will replace some of the existing fleet of Boeing 747-400s for subsidiary British Airways between 2017 and 2012.

Its Spanish flag carrier Iberia has also reached a deal with Boeing to secure commercial terms and delivery slots that could lead to an order of 787s.

Boeing has said it would have the 787s up and running by mid-April following design changes to the battery system.

Flights of the 787 were banned after lithium-ion batteries overheated in two of the aircraft in January.

Chief Executive of IAG, Willie Walsh, said new technology engines and improved aerodynamics will lower fuel burn leading to reduced carbon and NOx emissions.

"British Airways has 24 Boeing 787s on order already and we plan to boost this by a further 18 aircraft by exercising our options," he said.

"The aircraft offers a step change in fuel burn efficiency versus our existing aircraft with improvements in fuel cost per seat of more than 20%."

British Airways' 787s will be powered by Rolls-Royce Trent 1000 engines. The engine order includes a maintenance package with a total care agreement, IAG said.

British Airways has 118 wide-bodied longhaul aircraft in its fleet with 42 aircraft ordered while Iberia has 31 wide-bodied longhaul aircraft with six aircraft ordered.

RD

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
Properties for sale for around £1m
Houses for sale

Properties for sale for around £1m

From a stone-built farmhouse in the Snowdonia National Park, to a Victorian terraced house close to London’s Regent’s Canal, eight of the best propert…
15 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021