IAG's British Airways orders new Airbus A350 aircraft

International Airlines Group (IAG) has ordered 18 new Airbus A350 aircraft for its subsidiary British Airways(BA).

International Airlines Group (IAG) has ordered 18 new Airbus A350 aircraft for its subsidiary British Airways(BA).

The move is part of the company's plan to phase out a fleet of 30 Boeing planes over the next 10 years. The $1.6bn deal allows for an option for an additional 18 A350 aircraft.

IAG plans to place firm orders on 18 Boeing 787s, which together with the new A350s will be used to replace BA's fleet of 30 Boeing 747-400 planes between 2017 and 2023.

The company also said it was in talks with Airbus and Boeing about supplying aeroplanes for its Spanish arm Iberia.

The A350 aircraft are powered by Rolls-Royce Trent XWB engines.

"The A350-1000 will bring many benefits to our fleet. Its size and range will be an excellent fit for our existing network and, with lower unit costs, there is an opportunity to operate a new range of destinations profitably," said IAG Chief Executive Willie Walsh.

"This will not only bring greater flexibility to our network but also more choice for our customers."

He said both aircraft would provide further cost efficiencies and environmental benefits with fuel cost per seat improvements of more than 20%.

"This order will also secure jobs in Britain and Spain," he added.

"The A350's wings are made in Britain while its horizontal tail plane, horizontal tail plane boxes and lower wing covers are made in Spain. Rolls-Royce Trent XWB engines are assembled in Britain."

RD

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Share tips of the week – 24 March
Investments

Share tips of the week – 24 March

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
24 Mar 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023
Where will house prices go in 2023?
House prices

Where will house prices go in 2023?

We explore what could happen to house prices in 2023 as the market continues to slow down.
24 Mar 2023