German airline Lufthansa orders 80 planes from Boeing, Airbus for $9 bn

Lufthansa ordered 80 planes from Boeing and Airbus and agreed to future purchasing options for a total value of $9 billion, the German flagship carrier said on Tuesday.
 

The deal provides for 40 Boeing 737 MAX 8 planes and 40 Airbus A220-300s to be delivered in 2026-2032.
 

It also includes 60 future purchasing options for the MAX 8, 20 options for the A220, as well as 40 options for Airbus A320s.
 

The order is Lufthansa's first buy of Boeing narrow body planes in about 30 years, as well as its first purchase of the 737 MAX model.
 

The airline was a launch customer for an older version of the Boeing 737 in the late 1960s, but has maintained an all-Airbus single-aisle fleet after phasing out the 737 in 2016.
 

It has continued to buy Boeing wide body aircraft, with a backlog that includes 787 Dreamliners, 777 freighters and the upcoming 777X mini-jumbo.
 

Widely seen as one of the industry's most technically demanding buyers, Lufthansa Group was the original launch customer for what was then known as the Bombardier CSeries in 2008. Airbus bought the small passenger plane program in 2018 and renamed it A220 after Bombardier ran into financial problems.
 

Lufthansa's repeat order for the A220 represents a boost for the small passenger jet in the wake of a series of problems with engines from Pratt & Whitney, which have affected part of the Airbus A320 family and to some extent the smaller A220.
 

"It is a good strategic decision for the Lufthansa Group to order Boeing 737 aircraft again for the first time since 1995," said Lufthansa CEO Carsten Spohr, who added that the MAX 8 would help the company meet carbon reduction requirements.
 

Spohr also reinforced Lufthansa's relationship with Airbus as the planemaker's largest airline customer.
 

"Just a few months ago... we received our 600th aircraft from Airbus, and we look forward to taking delivery of number 700," he said.
 

Boeing shares were up 1.6% in morning trade, while Airbus was up 0.6%.
 

Lufthansa plans to finance the purchase with net investments of 2.5-3 billion euros ($2.7-3.2 billion) in 2023 and about the same amount next year.
 

The order would not have a significant amount on the capital expenditure in 2023-2024, it added.