Largest Business Deal in Icelandair’s History: Purchase of Airbus Passenger Aircraft

In a historic move, Icelandair announced its plans to replace its fleet of Boeing aircraft, which have been in service since 1990, with Airbus passenger planes. This ambitious endeavour to renew its fleet with Airbus aircraft will involve investments totalling hundreds of billions of Icelandic króna. These purchases mark the largest transaction in the 86-year history of the airline.

Icelandair and the aircraft manufacturer Airbus have signed a contract to acquire up to twenty-five A321-XLR aircraft. Additionally, the company will lease four A321LR planes on a long-term basis.

Largest Deal in Icelandair’s History.
Confirmation regarding the order of thirteen aircraft and the purchase rights for an additional twelve of the same model has been received. Deliveries will commence in 2029, and the exact purchase price remains confidential. According to pricing information available on aviation enthusiasts’ websites, the total investment is expected to reach hundreds of billions of Icelandic króna. Bogi Nils Bogason, CEO of Icelandair, expressed his satisfaction with the deal.

“This is a significant agreement and a major milestone for us. It is the largest deal Icelandair has ever made in its 86-year history,” stated Bogi. When asked about purchase financing, Bogi explained that Icelandair is highly sought after by financial institutions, including leasing companies and banks specialising in aircraft financing.

“We will utilize the most cost-effective financing options available to us,” Bogi added.

Boeing Replaced by Airbus
With this change, it is evident that Icelandair’s future fleet will primarily consist of Airbus aircraft rather than Boeing planes as in previous decades. Transitioning to a different aircraft manufacturer presents several challenges for airlines.

“This is a challenge,” stated Bogi, “but simultaneously, it is an exciting and enjoyable project. Our entire staff is thrilled and eager for the upcoming changes. It will require training for our flight crew, and that training will commence very soon.”

Icelandair’s decision to transition to Airbus planes represents a significant turning point for the airline and underscores its commitment to modernizing its operations. Implementing the new fleet will enhance the airline’s efficiency and contribute to its overall growth strategy in the highly competitive aviation industry.

This is according to globenewswire press release