Icelandair and Airbus sign a Memorandum of Understanding for the purchase of up to 25 Airbus A321XLR aircraft
April 06 2023 - 9:25PM
Icelandair and Airbus sign a Memorandum of Understanding for the
purchase of up to 25 Airbus A321XLR aircraft
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.”
Contact informationInvestors: Iris Hulda Thorisdottir, Director
Investor Relations. E-mail: iris@icelandair.isMedia: Asdis
Petursdottir, Director Communications.
E-mail: asdis@icelandair.is
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