Lufthansa Strikes $9 Billion Deal with Boeing and Airbus for 80 Planes

Lufthansa announced on Tuesday that it had struck a deal to purchase 80 planes from both Boeing and Airbus, with a total value of $9 billion. This order marks Lufthansa's first acquisition of Boeing narrow-body planes in approximately three decades.

Reuters reported that the deal also represents Lufthansa's initial investment in the Boeing 737 MAX model.

Boeing and Airbus Deliveries

The agreement includes 40 Boeing 737 MAX 8 planes and an additional 40 Airbus A220-300s, scheduled for delivery between 2026 and 2032, per The Times of India. Moreover, the deal secures 60 future purchasing options for the MAX 8, 20 options for the A220, and 40 options for Airbus A320s.

Carsten Spohr, CEO of Lufthansa, the German flagship carrier, hailed this order as a significant strategic move for the company. Including the Boeing 737 MAX 8 in Lufthansa's fleet will help the airline meet its carbon reduction requirements. Additionally, this purchase solidifies the airline's long-standing relationship with Airbus, as Lufthansa remains Airbus's largest airline customer.

Lufthansa's History and Fleet

Lufthansa has a rich history with Boeing, having been a launch customer for an earlier version of the Boeing 737 in the late 1960s. However, the airline phased out the 737 in 2016 and transitioned to an all-Airbus single-aisle fleet. In recent years, Lufthansa has primarily focused on purchasing Boeing wide-body aircraft, including Dreamliners, 777 freighters, and the upcoming 777X mini-jumbo.

Airbus's A220 program, originally known as the Bombardier CSeries, faced challenges after its acquisition by Airbus in 2018. Lufthansa's repeat order for the A220 serves as a confidence boost for this small passenger jet, which has encountered issues with Pratt & Whitney engines, affecting both the Airbus A320 family and the A220 itself.

Lufthansa plans to finance the $9 billion purchase with net investments of 2.5-3 billion euros ($2.7-3.2 billion) in 2023 and a similar amount in the following year. The capital expenditure for 2023-2024 is expected to remain unaffected by this procurement.

Photo: Lufthansa Newsroom