British Airways announces Airbus order worth $12 billion

23 Apr, 2013

British Airways on Monday announced a deal to buy up to 36 long-haul Airbus A350 passenger planes worth almost $12.0 billion at list prices. BA said parent group IAG, which owns also Spanish carrier Iberia, had signed a Memorandum of Understanding to buy 18 Airbus A350-1000 aircraft with an option to purchase 18 more. Each plane has a catalogue price of $332.1 million, according to European planemaker Airbus' website, though airlines tend to receive significant discounts on bulk orders.
"After a thorough selection process, International Airlines Group (IAG), and British Airways have signed a Memorandum of Understanding (MoU) to buy 18 Airbus A350-1000 aircraft plus 18 options, as part of the airline's on-going long-haul aircraft fleet renewal and modernisation strategy," a statement said. "IAG, owner of both British Airways and Iberia, has also secured commercial terms and delivery slots that could lead to firm orders for Iberia. Firm orders will only be made when Iberia is in a position to grow profitably, having restructured and reduced its cost base," it added.

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