British Airways Parent IAG Orders 18 Boeing 777X Twins

Boeing has received an order from flag-carrier British Airways and its parent International Airlines Group (IAG) for up to 42 new 777X airliners. The order includes a firm commitment for 18 of the 777-9 variant, plus options on a further 24. IAG, which includes Spain's Iberia, confirmed it will use the aircraft on firm order to replace 14 Boeing 747-400s and four Boeing 777-200s between 2022 and 2025.

The U.S. OEM announced the signing on Thursday and valued the contract at $18.6 billion at list prices if IAG exercises all its options. While the Boeing 777-9 carries a list price of around $442.2 million, IAG negotiated a "substantial" discount, according to IAG CFO Enrique Dupuy de Lôme. “IAG has a range of financing options and will choose the most appropriate source closer to the delivery time,” he added.

“We are honored that British Airways has selected the 777X as part of its fleet for its next century,” said Boeing Commercial Airplanes CEO Kevin McAllister, reflecting on British Airways’ 100th anniversary year.

The selection by IAG and British Airways raises the order and commitment count for the 777X to 358. Production of the first 777-9 began in 2017. Boeing plans a rollout ceremony for the airplane in early March, followed by first flight later this year and first delivery in 2020.

General Electric GE9X engines will power British Airways’ 777-9s, the contract for which includes a comprehensive maintenance package with GE, Dupuy de Lôme confirmed.

“The new 777-9 is…the ideal replacement for the Boeing 747 and its size and range will be an excellent fit for the airline’s existing network," said IAG chief executive Willie Walsh, who noted the new aircraft offers a 30 percent operating cost improvement over the 747-400.

British Airways said it now flies 135 widebodies (12 A380s, thirty 787s, twelve 777-300ERs, forty-six 777-200s, and thirty-five 747s) and awaits delivery of 12 more 787s, four 777-300ERs, and 18 A350s on order.

The 777-9 is larger and features a slightly wider cabin than do current 777s, allowing it to carry 400 to 425 passengers in a standard two-class cabin layout. The design incorporates an all-new composite wing, and "offers airlines 12 percent lower fuel consumption than competing airplanes,” said Boeing, in reference to Airbus’s A350 XWB. The 777-9 flies to a standard range of 7,600 nautical miles.

British Airways has been undergoing a fleet upgrade for some time. It plans to take delivery of the first four of 18 Airbus A350-1000s this year and now appears unlikely to add any of the additional seven A380s on which it holds options to its fleet of 12 superjumbos. As of December 31, it operated 35 Boeing 747s out of London Heathrow Airport. BA expects to retire its last Boeing 747 in February 2024.

The Boeing 777 has served as the mainstay of the British Airways long-haul operation. The airline plans to keep 777s in operation for 30 years, meaning some will remain in service beyond 2030. The airline flies 12 Boeing 787-8s and holds options for a further 12; eighteen 787-9s with options for a further six; and twelve 787-10s on order and due for delivery between 2020 and 2023.