737 MAX-1

Iceland’s flag carrier Icelandair has signed a deal with Boeing to purchase 12 single-aisle 737 MAX jets with an option to acquire an additional 12 aircraft.

Valued at $1.2bn at list prices, the deal includes eight 737 MAX 8 and four MAX 9 variants.

The flag carrier plans to fund the acquisition through its internal resources and bank loans.

Boeing will deliver the first aeroplane from the order in the first half of 2018.

Icelandair president and chief executive officer Bjorgolfur Johannsson said that the company had a successful relationship with Boeing for decades and expected the cooperation to continue for years to come.

"This commitment is the result of our research into what aircraft manufacturers have on offer to help us strengthen and grow our fleet and our network towards the future," Johannsson added.

Powered by CFM International LEAP-1B engines, 737 MAX will be the latest variant that builds on the strengths of Next-Generation 737 and is scheduled to enter service in 2017.

"This commitment is the result of our research into what aircraft manufacturers have on offer to help us strengthen and grow our fleet and our network towards the future."

In addition to aerodynamic improvements to the tail and new advanced technology winglet, the 737 MAX will reduce fuel consumption and CO2 emissions by 13%, and according to the Chicago-based aircraft manufacturer, it will offer an 8% lower operating costs, compared with rival aircraft in the single-aisle segment.

Boeing Commercial Airplanes European sales vice president Todd Nelp said that over the past several years, Icelandair had used its all-Boeing 757 fleet to establish its hub in Reykjavik as an important gateway between Europe and North America.

"The introduction of the 737 MAX to Icelandair’s operation will complement its existing 757 fleet and ensure the carrier’s continued expansion across both continents, offering significant fuel saving with unrivaled passenger comfort," Nelp added.

Icelandair currently has an all-Boeing fleet of 23 757 jets and operates flights to a network of more than 25 international destinations.

Image: Icelandair is expected to receive first 737 MAX from the order in the first half of 2018. Photo: courtesy of Boeing.