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Pin to quick picksInternational Airlines Share News (IAG)

Share Price Information for International Airlines (IAG)

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Share Price: 178.65
Bid: 178.70
Ask: 178.80
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UPDATE 2-Airbus wins Air France-KLM jet order in dramatic treble - sources

Thu, 16th Dec 2021 15:07

(Adds background)

By Tim Hepher and Eric M. Johnson

PARIS, Dec 16 (Reuters) - Airbus is set to complete
a rapid-fire trio of aircraft order wins at the expense of rival
Boeing on Thursday with a deal to supply all or most of a
requirement for dozens of narrowbody jets to Air France-KLM,
industry sources said.

Airbus has secured an order for A321 single-aisle jets from
Dutch subsidiary KLM, the sources said, confirming an advantage
first reported by Reuters last week, and is favoured to grab at
least one of two Transavia budget units, they said.

Neither planemaker agreed to comment.

Air France-KLM, whose KLM and Transavia units currently rely
on Boeing for narrowbody medium-haul jets, was not immediately
available for comment.

Air France-KLM is expected to announce results of the keenly
awaited contest later on Thursday, hours after Airbus seized a
deal to supply two tranches of aircraft to Australia's Qantas
in a defeat for existing supplier Boeing.

Shares in Europe's second-largest airline by fleet size
extended gains and were up 3% in afternoon trading.

The Franco-Dutch group launched a tender earlier this year
to renew and expand the medium-haul Boeing 737 fleet at KLM and
the French and Dutch operations of Transavia.

It has said the deal could involve a firm purchase of 80
aircraft with options for another 60-80 in what would be the
group's biggest single fleet transaction.

Factors weighing in Airbus's favour in recent months have
included a gradual thawing of relations between French and Dutch
arms of the airline group, which have different suppliers, and
tensions over recent Boeing 787 delays, industry sources say.

The Air France-KLM deal continues a buoyant week for Airbus
after Singapore Airlines threw its weight behind its
efforts to break Boeing's grip on the cargo plane market, with a
tentative order for seven new A350 freighters.

However, Boeing is ahead on firm orders so far this year, as
of the end of November, due to a sharp recovery in sales of the
737 MAX after it returned to service following a safety ban.

Boeing is expected to grab at least one more order before
end-year and appears ahead so far in a narrowbody contest run by
British Airways owner IAG, industry sources said.

Airlines are once again placing orders for jets as the
industry starts to map growth beyond the pandemic and take
advantage of lower fuel costs and emissions.
(Reporting by Tim Hepher, Eric M. Johnson; Editing by Kirsten
Donovan)

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