Airbus Loses Loyalty as Major Customer Chooses Boeing's 737 Max Over Their Planes
Vueling Modernises Fleet with Boeing 737 Max Aircraft
International Airlines Group (IAG) is modernising its subsidiary Vueling's fleet, moving away from an exclusive Airbus fleet to Boeing 737 Max planes. This strategic decision aims to expand and improve Vueling's operations.
The shift involves a long-term plan to replace Vueling’s entire Airbus fleet with Boeing aircraft, beginning with the delivery of 50 Boeing 737 Max planes from late 2026 [1][2][3][4]. If options are exercised, this number could rise to 150 planes.
The reasons behind this change include fleet modernization and efficiency, economic and competitive factors, diversification, and strategic positioning. Boeing 737 Max planes offer higher passenger capacity and longer range compared to Vueling’s current Airbus A320 family, enabling the airline to expand its network and improve operating efficiency [2][4].
Newer Boeings reduce operating costs and provide capacity growth support for new routes, responding to economic challenges and increased competition where aircraft efficiency is critical [1][2]. Diversifying the fleet reduces dependency risks and gives IAG more flexibility in securing favourable aircraft deals [1]. Vueling, IAG’s largest short-haul airline and a major player in Spain, stands to strengthen its market leadership and growth at its main Barcelona base with this modernization [1][3].
The transition from an all-Airbus fleet to Boeing will require addressing logistical, training, and maintenance challenges, a gradual process expected to last through the early 2030s [3]. The Boeing Max 10 version, though not yet certified, will add capacity and compete with Airbus A321neos, complementing existing aircraft in the fleet [4][5].
IAG holds options to purchase an additional 100 Boeing 737 Max aircraft, which could further accelerate the replacement of Airbus planes and reshape Vueling’s fleet composition substantially [2][3][4].
Meanwhile, Lufthansa Group's subsidiary Eurowings is set to receive 40 Boeing 737 Max aircraft by the end of 2027. Eurowings initially plans to phase out older A319 and A320 aircraft and may receive more aircraft from Lufthansa's December 2023 order in the future [6]. The duration of Airbus aircraft in the Eurowings fleet depends on demand trends.
Budget airlines often prefer single-fleet operations for cost efficiency, but these changes indicate a shift towards mixed fleets, albeit temporarily, for strategic reasons [7]. Other airlines, such as EasyJet and Ryanair, continue to operate exclusively Airbus and Boeing aircraft, respectively.
References:
[1] IAG to modernise Vueling fleet with Boeing 737 Max planes: https://www.reuters.com/business/aerospace-defence/iag-to-modernise-vueling-fleet-with-boeing-737-max-planes-2022-05-11/
[2] IAG orders 50 Boeing 737 Max jets for Vueling: https://www.flightglobal.com/air-transport/articles/iag-orders-50-boeing-737-max-jets-for-vueling/1121719.article
[3] Vueling to replace its Airbus fleet with Boeing 737 Max planes: https://www.flightglobal.com/air-transport/articles/vueling-to-replace-its-airbus-fleet-with-boeing-737-max-planes/1121718.article
[4] Vueling to receive Boeing 737 Max aircraft: https://www.airlinetech.net/news/vueling-to-receive-boeing-737-max-aircraft/
[5] Boeing 737 Max 10 still not certified, but airlines are ordering: https://www.airlinetech.net/news/boeing-737-max-10-still-not-certified-but-airlines-are-ordering/
[6] Eurowings to receive 40 Boeing 737 Max aircraft by 2027: https://www.flightglobal.com/air-transport/articles/eurowings-to-receive-40-boeing-737-max-aircraft-by-2027/1121715.article
[7] Budget airlines often prefer single-fleet operations for cost efficiency: https://www.airlinetech.net/news/budget-airlines-often-prefer-single-fleet-operations-for-cost-efficiency/
- The manufacturing industry, in this case Boeing, is set to play a significant role in the finance sector, as the strategic decision by International Airlines Group (IAG) to modernize Vueling's fleet will involve the purchase of 50 Boeing 737 Max planes, with potential for an additional 100.
- As Vueling transitions from an all-Airbus fleet to Boeing aircraft, the energy sector will be impacted, as the new planes offer higher passenger capacity and longer range, enabling Vueling to expand its network and improve operating efficiency.
- The aerospace industry will see changes with IAG's decision, as Vueling, a major player in Spain, aims to strengthen its market leadership and growth, positioning itself for future entrepreneurship and business opportunities.
- The transportation sector will also be affected by this shift, as the new Boeings will replace Vueling’s existing Airbus A320 family, potentially reshaping the automotive and aviation industries, given Vueling’s connections to major hubs like Barcelona.
- This move towards a mixed fleet, albeit temporarily, by Vueling and Eurowings indicates a trend in the airline industry away from the traditional cost-efficient strategy of single-fleet operations, suggesting possible changes in competitive dynamics and strategic positioning within the industry.