International Airlines Group (LON:ICAG) (IAG) SA is currently engaged in confidential discussions with Airbus SE (OTC:EADSY) and Boeing (NYSE:BA) Co. to potentially modernize British Airways' aging fleet. The talks, which are ongoing as of Friday, involve a possible order for more than 20 new widebody aircraft.
British Airways' current fleet comprises nearly 60 Boeing 777s, 37 of the 787 Dreamliner, and around 13 Airbus A350s. The airline is looking to replace older models, particularly its average 24-year-old 777-200s. An immediate decision on the matter is not expected at this time.
This move aligns with the global trend of airlines updating their widebody fleets as long-haul traffic rebounds following the Covid-19 pandemic. British Airways, a dominant player on profitable North Atlantic routes, operates older planes than rivals such as Virgin Atlantic Airways Ltd.
IAG retains unexercised options for about 30 Boeing widebodies and purchase options for another 50 A350s. The company is also awaiting deliveries from previous orders.
With demand resurging, both Airbus and Boeing are under pressure to fulfill orders. This situation is prompting airlines to secure available production slots promptly to ensure their fleet modernization plans progress without delay.
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