The agreement provides for the delivery of 40 Boeing 737 MAX 8 aircraft and 40 Airbus A220-300s in the period 2026-2032.
Lufthansa ordered 80 planes from Boeing and Airbus and agreed to future purchase options worth a total of $9 billion, the German flagship airline said on Tuesday.
The agreement provides for the delivery of 40 Boeing 737 MAX 8 aircraft and 40 Airbus A220-300s in the period 2026-2032.
It also includes 60 future purchase options for the MAX 8, 20 options for the A220 and 40 options for Airbus A320s.
The order marks Lufthansa's first purchase of Boeing narrow-body aircraft in about 30 years, as well as its first purchase of the 737 MAX model.
The airline was a launch customer for an older version of the Boeing 737 in the late 1960s, but has maintained an all-Airbus single-aisle fleet following the 737 phase-out in 2016.
It has continued to buy Boeing widebody planes, with a backlog that includes 787 Dreamliners, 777 freighters and the upcoming 777X mini-jumbo.
Lufthansa Group is widely regarded as one of the most technically demanding buyers in the industry and was the original launch customer for what was then known as the Bombardier CSeries in 2008. Airbus bought the small passenger jet program in 2018 and renamed it the A220 after Bombardier ran into financial problems. .
Lufthansa's repeat order for the A220 represents a boost for the small airliner in the wake of a series of problems with Pratt & Whitney engines, which have affected part of the Airbus A320 family and to some extent the smaller A220.
“It is a good strategic decision for the Lufthansa Group to order Boeing 737 aircraft again for the first time since 1995,” said Lufthansa CEO Carsten Spohr, who added that the MAX 8 would help the company meet CO2 requirements reduction to be met.
Spohr also strengthened Lufthansa's relationship with Airbus as the aircraft manufacturer's largest aviation customer.
“Just a few months ago… we received our 600th aircraft from Airbus, and we look forward to taking delivery of number 700,” he said.
Shares of Boeing rose 1.6% in morning trading, while Airbus rose 0.6%.
Lufthansa plans to finance the purchase with net investments of 2.5 to 3 billion euros in 2023 and approximately the same amount next year.
The decision would not have a significant impact on capital expenditure over the 2023-2024 period, it added.
First print: December 19, 2023 | 11:03 PM IST