Icelandair and Airbus sign
a Memorandum of Understanding for the purchase of up to 25 Airbus A321XLR
aircraft
By
-
7 April 2023
426
Icelandair
and Airbus have signed a Memorandum of Understanding for the purchase of 13
Airbus A321XLR aircraft with purchase rights for additional 12 aircraft. The
aircraft deliveries will start in 2029. Icelandair, however, plans to start
operating Airbus aircraft in 2025 and is currently in advanced stage of
negotiations in relation to four leased Airbus A321LR for that purpose. Further
additions can be expected in the years thereafter. With the acquisition of the
Airbus aircraft, Icelandair will complete the replacement of the Boeing 757.
The agreed
purchase price of the 13 aircraft is confidential. The financing of the
aircraft is yet to be determined but the Company will explore financing options
closer to the delivery dates.
The A321XLR
and A321LR aircraft are part of the Airbus A320neo Family of narrow-body
aircraft that provide excellent range, fuel efficiency and lower carbon
emissions. The implementation of the aircraft will reduce operating costs,
further support Icelandair’s sustainability targets and offer exceptional
customer experience through the aircraft design and unique features. The
aircraft has around 190 seats in Icelandair’s layout. In comparison, the Boeing
757-200 aircraft has 183, whereas the 737 MAX 8 and the 737 MAX 9 have a
passenger capacity of 160 and 178, respectively.
The A321XLR
aircraft has a range of up to 4,700 nautical miles (8,700 km), allowing
Icelandair to operate it on its long-range destinations with opportunities to
enter new markets. The A321LR aircraft has a range of up to 4,000 nautical
miles (7,400 km) and will thus be able to service Icelandair’s current route
network.
The Boeing
757,767 and 737 MAX aircraft will continue to be important for Icelandair’s
operations in the coming years. Icelandair has had a successful relationship
with Boeing for decades and the aircraft have been a key to Icelandair’s
success in the past. Until 2025, Icelandair will continue to operate a full
Boeing fleet but following the first deliveries from Airbus, the Company will
operate a mixed fleet of Airbus and Boeing aircraft.
Bogi Nils
Bogason, President & CEO of Icelandair:
“We are happy
to announce that we have now reached a conclusion regarding Icelandair’s future
fleet. We have decided that the capable and fuel-efficient Airbus aircraft,
A321XLR and A321LR, will become the successors of the Boeing 757 we are
gradually retiring. The Boeing 757 has been the cornerstone of Icelandair’s
operations since 1990. Its unique capabilities have underpinned the successful
development of our extensive route network and competitive transatlantic hub by
leveraging Iceland’s unique geographical location to connect North America and
Europe via Iceland. The excellent Airbus aircraft will not only allow us to
further develop our proven business model around transatlantic flights but also
open opportunities for future growth by entering new and exciting markets.”
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