British-Spanish company orders $5bn Airbus planes

International Airlines Group (IAG), the parent of British Airways and Spain's Iberia, has placed a firm order for 62 Airbus A320 carriers worth close to USD 5.4 billion at catalogue prices and has placed an almost equal option for 58 of the same aircraft, Airbus said in a statement Friday. The order also includes 100 other potential planes also for the group's Vueling low-cost carrier, which flies regularly to Spain and to and from other European countries. Those deliveries will be made a later date. Airbus said that deliveries of the 62 firm orders would begin between 2015-2020. The deal is part of wider negotiations between IAG and Airbus to acquire a total of 220 aircraft, an operation that is awaiting shareholder approval. The firm order includes purchase of 32 A320neo planes, which provide fuel economy of up to 25 percent and are environmentally more friendly. IAG is also taking 30 regular A320ceo carriers. An MOU has been signed for 100 other A320neos for Vueling once institutional approval is obtained. The USD 5.4 billion list-price estimate for the major deal could be significantly lower because of negotiated prices, the inclusion of training, maintenance and spare parts.