Where did IAG's surprise Boeing 737 MAX order come from?

While Airbus successfully launched its A321XLR at the Paris Air Show against a general backdrop of declining orders in a market where renewal orders have already largely been placed in recent years it was Boeing that pulled off the big media coup of the week with an order for 200 737 MAX placed by IAG (British Airways, Iberia, Vueiling, etc.).

An order fallen from the sky

While the B737 MAX remains grounded following the incidents encountered in recent months, some wonder if it will survive and some airlines ask the manufacturer to change its name now too negatively perceived, no one expected to see Boeing record orders for this aircraft at the Paris Air Show. And yet….

So it’s not only 737s that fall from the sky, but also orders, with a totally unexpected order of 200 aircraft placed by the IAG group.

A surprising order in many ways.

Already because of the above-mentioned facts that do not encourage optimism for the future of the program.

Secondly, because IAG is not a regular customer of Boeing for single-aisle aircrafts (they have ordered 14 A321 XLRs) even if the 737 MAX could be relevant on certain long-haul routes currently operated with twin-aisle aircraft, or on routes that are not very interesting with current aircraft, or to replace the OpenSkies 757/767.

Finally, because no call for tender was launched for this order, IAG having entered into exclusive negotiations with Boeing.

In other words, this was not well received by Airbus, which now wants to make a counter-proposal.

A fake order?

An order to be taken with a pinch of salt, however, since it does not include any firm purchase. It is more like a letter of intent that does not commit to anything than an order.

On the other hand, this statement as well as that of the CEO of IAG saying that they have every confidence in Boeing’s ability to make the 737 MAX a success can also be interpreted as ….the desire to continue with Airbus.

IAG is a very good Airbus customer for single-aisle aircraft, and we can imagine that they didn’t want Airbus to think they were too much on their home turf. In this logic, this “order” would please Boeing (from whom IAG buys twin-aisle aircraft) by sending a positive signal to the market, while making Airbus understand that it will have to make commercial efforts to sell its A321 XLR.

Qatar waiting for the 797 ?

Another airline to show its confidence in Boeing is Qatar, which does not imagine passengers flying long distances in a narrow-body aircraft and prefers to wait for Boeing’s hypothetical 797. Or at least wants us to believe it. With the very provocative Akbar Al Baker (the CEO of Qatar) you can expect anything.

In short, we can widely expect a future order of A321 XLR from IAG or even Qatar, but in the meantime everything is just posturing and negotiations.

Photo : B737Max by Jordan Tan via Shutterstock.