Lufthansa Places Two Orders of 80 Jets from Airbus And Boeing Worth of $90 Bln

Lufthansa, the flagship carrier of Germany, has recently placed an order for a whopping 80 planes from the two major aircraft manufacturers, Boeing and Airbus. This deal is worth a staggering $9 billion and includes 40 Boeing 737 MAX 8 planes and 40 Airbus A220-300s, which are expected to be delivered sometime between 2026 and 2032. The order also includes 60 future purchasing options for the MAX 8, 20 options for the A220, and 40 options for Airbus A320s.


Lufthansa's decision to order from Boeing marks a significant milestone as it is the airline's first purchase of narrow-body planes from the manufacturer in over 30 years. Furthermore, this acquisition will also mark Lufthansa's first purchase of the 737 MAX model. Previously, Lufthansa was a launch customer for an earlier version of the Boeing 737, but the airline has since maintained an all-Airbus single-aisle fleet after retiring the 737 in 2016. It is worth noting that Lufthansa has continued its partnership with Boeing in the production of wide-body aircraft, with a backlog that includes 787 Dreamliners, 777 freighters, and the upcoming 777X mini-jumbo.

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Lufthansa is widely regarded as one of the industry's most technically demanding buyers and was the original launch customer for what was then known as the Bombardier CSeries in 2008. The small passenger plane program was acquired by Airbus in 2018 and renamed it A220 following Bombardier's financial difficulties. Lufthansa's repeat order for the A220 represents a boost for the small passenger jet, which has been experiencing a series of engine problems from Pratt & Whitney, affecting part of the Airbus A320 family and, to some extent, the smaller A220.

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According to Lufthansa CEO Carsten Spohr, "It is a good strategic decision for the Lufthansa Group to order Boeing 737 aircraft again for the first time since 1995," adding that the MAX 8 would help the company meet carbon reduction requirements. Spohr also emphasized Lufthansa's strong relationship with Airbus as the planemaker's largest airline customer, stating, "Just a few months ago, we received our 600th aircraft from Airbus, and we look forward to taking delivery of number 700." In terms of financing, Lufthansa plans to invest approximately 2.5-3 billion euros ($2.7-3.2 billion) in 2023 and the same amount next year to cover the purchase cost. The order will not have a significant impact on the capital expenditure in 2023-2024. The market responded positively to this news, with Boeing shares increasing by 1.6% in morning trade, while Airbus was up 0.6%.

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