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US Commerce Secretary says Britain to order Boeing ( BA ) jets
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Industry sources say IAG to split order with Airbus
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Deal includes around 30 Boeing 787, 30 Airbus jets, they
say
(Recasts, adding details of Airbus order)
By Andrea Shalal and Paul Sandle
WASHINGTON/LONDON, May 8 (Reuters) - The United States
said on Thursday Britain would purchase $10 billion of Boeing ( BA )
jets and industry sources said British Airways owner IAG
would also buy some 30 jets from Europe's Airbus in a
fleet expansion split between transatlantic rivals.
U.S. Commerce Secretary Howard Lutnick revealed the U.S.
part of the jet order on Thursday during the announcement of a
bilateral trade deal between Britain and the United States.
Such an order would add to an already large backlog of
Boeing ( BA ) planes slated for UK purchasers - 149 in total, according
to Boeing's ( BA ) published backlog.
Lutnick said he would let the airline making the purchase
announce the details.
IAG plans to order around 30 Boeing 787 jets and a similar
number of Airbus long-haul planes including the A350 and A330neo
models, according to three sources familiar with the matter.
"It's a split order," one of the sources told Reuters.
Details of the purchase were expected to be announced with
IAG's quarterly earnings on Friday.
Boeing ( BA ) and Airbus declined comment and IAG could not
immediately be reached for comment.
Bloomberg News reported that IAG was poised to order 30
Boeing 787s and could secure options for further purchases.
The UK-based airline group, whose carriers also include
Iberia and Aer Lingus, is among the most influential aircraft
buyers and its decisions are closely watched by other airlines.
Big-ticket aircraft purchases have captured wider attention
across the globe as the industry is buffeted by trade tensions.
The European Union earlier included Boeing ( BA ) jets in a list
of items earmarked for possible tariffs on U.S. goods if trade
talks break down.
Airlines in non-EU Britain already have orders in the works
for 109 Boeing ( BA ) planes and a leasing company has another 40 on
order, according to Boeing's ( BA ) website.
Based on the models ordered, UK companies have an estimated
$12 billion-plus worth in planes due from Boeing ( BA ) after allowing
for typical industry discounts.
Planemakers have been wrestling with supply chain snags and
other challenges that have delayed deliveries.
Boeing ( BA ) is trying to ramp up production of its strongest
selling 737 MAX jet to a rate of 38 per month this year, after a
difficult 2024 when output slumped due to a broad quality crisis
that led to the replacement of its CEO.