British Airways Parent Signs $21B Deal After Tariff Removal

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British Airways' parent company just dropped $21 billion on 53 new planes. But why this massive purchase right now?

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The deal includes 32 Boeing 787-10 Dreamliners worth $13 billion and 21 Airbus A330-900neos valued at $8 billion, with options for 23 more aircraft.

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These aren't ordinary planes. Both models cut fuel consumption by 20-25% compared to older aircraft being replaced, slashing operating costs and emissions.

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Timing was critical. The purchase happened just one day after the US and UK signed a trade agreement removing tariffs on Rolls-Royce engines.

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Money talks: While the headline price tag is $21 billion, industry sources confirm IAG negotiated "substantial discounts" off the list prices, as is standard practice.

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Deliveries won't start until 2028 and will continue through 2033. Airlines plan fleet renewals years or even decades in advance.

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IAG aims to cut CO₂ emissions by 15% by 2030 and achieve net-zero by 2050. These new fuel-efficient planes are central to that strategy.

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Investors approved. IAG shares rose about 1% following the announcement, while Boeing's stock has climbed over 8% in 2025.

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"Airlines need to think in multi-year timeframes," explains analyst Alex Irving. "Boeing and Airbus are sold out for years."

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The broader picture: Air France-KLM and Lufthansa are also modernizing with similar aircraft, creating a continent-wide renewal of aging wide-body fleets.

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