Key Takeaways
• IAG orders 32 Boeing 787-10s ($13B) and 21 Airbus A330-900neos ($8B), with additional options.
• New US–UK trade deal removes tariffs, making it cheaper to import airplane parts and engines.
• Deliveries begin late 2020s; order boosts jobs, competition, and greener, quieter aircraft for passengers.
The United States 🇺🇸 and the United Kingdom 🇬🇧 have signed an important aviation agreement that splits billions of dollars in aircraft orders almost evenly between Boeing and Airbus. This large deal involves International Airlines Group, also known as IAG, which is the parent company of well-known airlines like British Airways, Iberia, Aer Lingus, Vueling, and LEVEL. IAG’s move to buy large numbers of airplanes from both Boeing and Airbus marks a big step for the global aviation industry as it tries to grow after the struggles brought by the COVID-19 pandemic.
Let’s break down what’s going on, why this deal is important, and what it could mean for airlines, workers, travelers, and the aviation industry around the world.
What’s Actually in the US–UK Aviation Deal?
At the center of this agreement is International Airlines Group’s decision to buy new planes from both Boeing and Airbus. Here are the main numbers:
- Boeing part: IAG is ordering 32 Boeing 787-10 Dreamliners for British Airways. The listed price for these jets is about $13 billion, but the real price is likely lower due to discounts. IAG also has an option to buy 10 more jets if needed.
- Airbus part: IAG will also get 21 Airbus A330-900neo planes, with a list price of about $8 billion. There are also options for up to 13 more A330-900neos. These will mainly go to Aer Lingus and Iberia, two other airlines in the IAG group.
- Extra orders: Back in March 2025, before this big announcement, IAG already agreed to take 18 more “widebody” jets. This includes six Boeing 777-9s for British Airways, six Airbus A350-900s for Iberia, and six Airbus A350-1000s.
Here’s a quick summary table of the major parts of this order:
All values are based on list prices. Actual contract prices are often lower due to negotiations.
This split ordering is quite rare and shows careful planning by IAG. By choosing both American and European manufacturers, the group secures the best deals, spreads risk, and makes sure it gets the newest, most efficient jets for its different airlines.
What’s the Trade Deal That Makes This Possible?
The plane orders are more than just a shopping list—they are tightly linked to a new trade deal between the United States 🇺🇸 and the United Kingdom 🇬🇧. This new agreement makes it easier to import and export key airplane parts by lowering or removing tariffs (which are extra taxes that make foreign goods more expensive).
Two of the most important parts affected by this are:
– General Electric engines made in the United States, which go into many Boeing jets.
– Rolls-Royce engines from the United Kingdom, used in several Airbus planes.
With these tariffs gone or reduced, it makes financial sense for IAG to update its fleet now. The group can get modern planes at better prices, with less red tape and lower costs when moving parts and technology between the United States 🇺🇸 and the United Kingdom 🇬🇧.
Why Does This Matter? The Strategic and Economic Impact
This deal does a lot more than just update an airline’s fleet. Here’s why it’s such a big moment:
1. Stronger US–UK Connections
This agreement helps keep the United States 🇺🇸 and United Kingdom 🇬🇧 very close, especially as major parts of the world face political and economic change. By working together on big business deals like this, both countries show their commitment to supporting each other’s big industries—aviation, travel, and trade.
2. Jobs and Industry Growth
Orders like these are great news for jobs. Making jets like the Boeing 787-10 and Airbus A330-900neo supports thousands of skilled workers on both sides of the Atlantic. Airbus builds its jets in factories across Europe, including the United Kingdom 🇬🇧. Boeing produces planes in the United States 🇺🇸, drawing in workers from states like Washington and South Carolina. Engine makers like General Electric and Rolls-Royce also benefit, and so do smaller companies that supply parts, make seats, and provide software.
3. Cleaner, Quieter, More Comfortable Planes
Both Boeing and Airbus have worked for years on building planes that burn less fuel, make less noise, and create fewer carbon emissions. The planes IAG ordered use the newest engines and lighter materials, which help airlines cut costs and do their part for the environment. Passengers also get a better experience with quieter engines, lower cabin pressure, and more space.
4. Sign of Confidence After a Tough Time
COVID-19 nearly stopped air travel for two years. Airlines lost billions and had to cancel or delay plane orders. On top of that, Boeing struggled with problems on some of its models, and Airbus had to slow down work because of shortages and the pandemic. This deal sends a clear signal to the world: airlines believe travelers will fill planes again and want to invest in new technology.
Luis Gallego, CEO of International Airlines Group, summed it up when he said, “This order marks another milestone in strengthening our airline brands and enhancing our customer proposition.” As reported by VisaVerge.com, this highlights how important this kind of deal is for improving the group’s services and making the most of its strong brands.
What Does This Mean for Airlines and Passengers?
For an airline group as large as IAG, ordering in bulk means better deals, especially when plane makers are hungry for big contracts. British Airways, Aer Lingus, and Iberia will each get new planes that let them update their long-haul fleets. This means older aircraft can be retired, reducing costs and improving the overall passenger experience.
For travelers, these new jets bring many benefits. Modern planes like the Boeing 787-10 and Airbus A330-900neo use less fuel, which could help airlines keep ticket prices steady even as oil prices rise. They are also designed to be more comfortable on long flights, with better humidity, more space, and quieter trips.
How Does This Affect the Global Industry?
This deal could set a pattern for other big airlines. In recent years, airlines often picked one manufacturer for big orders to get the best deal. But now, IAG chose to split its business between Boeing and Airbus rather than putting all its eggs in one basket. This could help airlines limit risk and keep more than one supplier competing hard for sales.
There’s another reason why this “split order” matters. By not picking just one manufacturer, IAG helps make sure both American and European aerospace industries stay strong. That means more jobs, more choices for airlines, and faster improvements as both Boeing and Airbus try to outdo each other.
Deliveries: When Will the New Jets Arrive?
The new aircraft will be delivered to IAG from the end of this decade through the early part of the 2030s. As these new jets start flying, older, less efficient aircraft will be retired. This is good for the environment and for airlines’ profits, as newer jets are cheaper to run.
The History Between Boeing, Airbus, and IAG
This deal isn’t happening in a vacuum. For years, Boeing and Airbus have fought for every major order all around the world. British Airways, Iberia, and Aer Lingus all operate both Boeing and Airbus jets, and each has favorites for certain routes. For example, British Airways is famous for its long history with Boeing “jumbo jets,” but nowadays, it mixes both manufacturers’ jets in its fleet.
Earlier, Boeing had a tough time because of trouble with the Boeing 737 MAX and some delays in making the 777X and 787. Meanwhile, Airbus had to pause work during the pandemic and wait for supply chains to reopen. As both companies recover, big orders like this help keep their factories busy and their workers employed.
A Strong Message for Other Airlines and Governments
This US–UK agreement shows that airlines can work with both sides of the Atlantic to get the best aircraft, technology, and support. It also shows how government policy—such as removing tariffs and making trade simpler—can drive business investments.
By choosing both Boeing and Airbus, IAG sets an example for other global airline groups, which may copy this strategy to make the most of competition and rebuild after tough years. This approach also tells governments that lowering tariffs and supporting fair trade is helpful, not just for airlines but for workers and passengers as well.
A Win for Passengers, Employees, and the Environment
When airlines fly newer planes from both Airbus and Boeing, everyone wins. Passengers get modern, quieter, more comfortable flights. Airlines spend less on fuel and maintenance, letting them offer more routes or keep prices stable. Workers in the United States 🇺🇸 and United Kingdom 🇬🇧 get more secure, better jobs. And as emissions fall, the environment benefits as well.
What Should You Watch for Next?
The next few years will be important. Travelers should look for more flights on new jets as older planes are replaced. Airline workers and suppliers will see increased activity as production ramps up at Boeing and Airbus factories. Governments may keep tweaking trade policies to help more deals like this happen.
If you want to follow updates on deliveries or changes in jet orders, you can check official airline press releases or reliable sources like the US Department of Transportation for more information on air transport rules and industry shifts.
Final Thoughts
The US–UK mega deal for split Boeing and Airbus orders marks a turning point for aviation and trade. With International Airlines Group buying a balanced mix of leading jets—backed by fresh trade agreements—the stage is set for more cooperation, investment, and jobs between the United States 🇺🇸 and United Kingdom 🇬🇧. This move is likely to help bring the travel industry back stronger, offer better choices for travelers, and support a cleaner, more efficient future for air travel.
As more airlines see the success of the split-order model, travelers and workers alike could see lasting changes in how the world moves by air. The International Airlines Group’s orders show that both Boeing and Airbus remain at the heart of global aviation, and their friendly competition will keep shaping the skies for years to come.
Learn Today
International Airlines Group (IAG) → A major airline holding company that owns British Airways, Iberia, Aer Lingus, Vueling, and LEVEL.
Tariffs → Government-imposed taxes on imported goods, often raising the cost of products like airplane parts.
Widebody Jets → Large passenger aircraft with two aisles designed for long-haul international flights, such as the Boeing 787 or Airbus A330.
Dreamliner (Boeing 787) → A modern, fuel-efficient, long-range Boeing aircraft known for lower emissions, quieter engines, and improved passenger comfort.
Rolls-Royce Engines → High-performance aircraft engines manufactured by Rolls-Royce, commonly used in Airbus and some Boeing planes.
This Article in a Nutshell
A landmark US–UK aviation deal splits billions in jet orders between Boeing and Airbus via International Airlines Group. The agreement removes tariffs, boosts jobs, and modernizes fleets for airlines like British Airways and Iberia. Passengers will enjoy quieter, greener flights as airlines invest in the next generation of aircraft.
— By VisaVerge.com
Read more:
• Airbus tells U.S. airlines they must pay tariffs on new planes
• Thai Airways adds new Airbus A321neo jets through fresh lease deals
• Etihad Airways has not launched Airbus A321LR flights to Paris yet
• American Airlines Airbus A320 diverts to Charlotte over issue
• Airbus assesses impact of new U.S. tariffs on industry
