Luxembourgian flag carrier Luxair has announced that it has signed a deal to acquire four aircraft from Boeing, all 737 MAX 8s. Two of the aircraft will be leased to the airline, while the other two will be purchased. With the additional aircraft, Luxair can expand its medium-haul operations significantly. It believes the 737-8 is the best-suited aircraft for its operations and expansion plans.

Aircraft acquisition

Boeing has agreed to modify the deal with Luxair to suit the airline's financial situation. Instead of selling all four to the airline upfront, it has agreed to split the order in two. The airline will lease the first two aircraft, which are to be delivered this summer.

The airline will use these aircraft to expand its route network as it adds more destinations to its busy summer schedule. The expansion will enable Luxair to better take advantage of the strong travel demand. The airline also agreed to purchase two MAX 8s upfront.

So far, no information has been given regarding the delivery dates of the two purchased airplanes or the deal's cost. The airline has yet to announce any specific routes which will be flown on the airliner.

However, it recently announced that it has expanded its Bombardier Dash 8 operations and route network. While this does not directly affect any operations conducted by the airline's fleet of 8 737s or the additional four 737 MAX 8s, it does show that the airline is looking to expand its operations into new markets.

The purchase and leaseback agreements are a big deal for the airline, which only operates a fleet of 19 aircraft. The carrier has been working to procure additional airplanes for multiple years as it looks to expand its fleet and services. With demand for passenger air travel on the rise, the deal could not have come at a better time.

The CEO of Luxair, Gilles Feith, shared the following concerning the agreement,

"Today is a good day for Luxair, our staff and our esteemed clients. Luxair took a large step into the direction of securing its role as the quality airline of Luxembourg and the Greater Region.

"I want to thank our Board of Directors for this act of trust, our staff members who helped us in the last years, all our valued customers and Cargolux. Today marks just the beginning of the journey of securing the long-term future of Luxair. Much more is yet to come."

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Valuable assets

Luxair, like many other airlines, does not take decisions to purchase new aircraft lightly. The airline believes that the MAX 8 is the optimal aircraft for the airline's future. The most significant advantage that the 737-8 brings to Luxair is its reduced fuel consumption.

The fuel-efficient engines will greatly reduce operating costs and carbon emissions while extending the aircraft's range. With reduced operating costs comes greater profitability as the airline can operate on larger margins and open more and newer routes

The Vice President of Europe & Israel Sales and Marketing at Boeing, Ricardo Cavero, stated,

"With the selection of the 737-8, Luxair is building a more sustainable operation, significantly lowering CO2 emissions while offering the latest airplane technology to its passengers,"

What do you think of this aircraft order? Let us know in the comments below.

• 

  Boeing

  Stock Code:

  BA

  Date Founded:

  1916-07-15

  CEO:

  Dave Calhoun

  Headquarters Location:

  Chicago, USA

  Key Product Lines:

  Boeing 737, Boeing 747, Boeing 757, Boeing 767, Boeing 777, Boeing 787

  Business Type:

  Planemaker