User avatar
PanAm_DC10
Crew
Posts: 3795
Joined: Wed Aug 23, 2000 7:37 am

Icelandair Order 10 737-800

Wed Jan 26, 2005 11:33 pm

Didn't expect this one!

By Susanna Ray
Jan. 26 (Bloomberg) -- Boeing Co. received an order for 10
737-800 airplanes from Icelandair Hf, Iceland's biggest airline,
with an option to buy five more.
The order is worth $650 million at list price, Chicago-based
Boeing said today in an e-mailed statement.

Ask the impossible to achieve the best possible
 
mauriceb
Posts: 2150
Joined: Tue Aug 10, 2004 2:50 am

RE: Icelandair Order 10 737-800

Wed Jan 26, 2005 11:34 pm

great news for boeing after all the airlines that choose the A320 family!!!


didn't expected them to buy the 737!!!
 
DAYflyer
Posts: 3546
Joined: Wed Sep 08, 2004 9:35 pm

RE: Icelandair Order 10 737-800

Wed Jan 26, 2005 11:34 pm

Cool! Great news for both companies. I wish them continued success.
One Nation Under God
 
drerx7
Posts: 4203
Joined: Fri Jun 30, 2000 12:19 am

RE: Icelandair Order 10 737-800

Wed Jan 26, 2005 11:38 pm

Probably going to assign them on routes to continental Europe. Or maybe to the U.S.?
Third Coast born, means I'm Texas raised
 
Horus
Posts: 5131
Joined: Sun Feb 22, 2004 1:04 am

RE: Icelandair Order 10 737-800

Wed Jan 26, 2005 11:45 pm

That was out of the blue! I hope FI all the success, but I wish they'd reduce their airfares a bit (guess we'll have to settle for Iceland Express till then).

The 738s should look great in FI's c/s!

Will they be fitted with winglets?

Horus

EGYPT: A 7,000 Year Old Civilisation
 
User avatar
PanAm_DC10
Crew
Posts: 3795
Joined: Wed Aug 23, 2000 7:37 am

RE: Icelandair Order 10 737-800

Wed Jan 26, 2005 11:50 pm

Hi Horus,

We'll need to wait about the winglets as I haven't got the full statement from Boeing yet. I'd assume they will. One thing for sure...more 737 across the Atlantic!

Regards
Ask the impossible to achieve the best possible
 
Horus
Posts: 5131
Joined: Sun Feb 22, 2004 1:04 am

RE: Icelandair Order 10 737-800

Wed Jan 26, 2005 11:58 pm

Hey PANAM_DC10

I initially assumed they'd definitely go for the winglets considering the distances they fly, but FI have previously used 733s and 734s on its route network.

http://www.airfleets.net/flottecie/index.php?file=flottecieh&opp=Icelandair&app=b737

Horus

EGYPT: A 7,000 Year Old Civilisation
 
PHLBOS
Posts: 6504
Joined: Thu Apr 01, 2004 6:38 am

RE: Icelandair Order 10 737-800

Wed Jan 26, 2005 11:59 pm

didn't expected them to buy the 737!!!

Given the fact that the 757 (the mainstay of Icelandair's fleet) is no longer being produced; what choice do they have among current Boeing metal? Although, the only surprise seems to be that they went for the 738 instead of the 739.
"TransEastern! You'll feel like you've never left the ground because we treat you like dirt!" SNL Parady ad circa 1981
 
User avatar
PanAm_DC10
Crew
Posts: 3795
Joined: Wed Aug 23, 2000 7:37 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 12:03 am

Horus

Too right, I recall one of my best photo's is that of an Icelandair 734 @ AMS. I agree that the distance they fly should make them lean toward winglets. We need a copy of the Press release but it's embargoed still!

Regards
Ask the impossible to achieve the best possible
 
Horus
Posts: 5131
Joined: Sun Feb 22, 2004 1:04 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 12:07 am

PANAM_DC10

Well I trust you'll post the press release here as soon as you get it  Smile

And can you show the photo you're referring to of the 737@AMS? is it on the A.net database?

Horus

EGYPT: A 7,000 Year Old Civilisation
 
Mikey711MN
Posts: 1229
Joined: Fri Nov 07, 2003 4:19 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 12:10 am

Probably going to assign them on routes to continental Europe. Or maybe to the U.S.?

I'm going to guess a steady mix of both. Their operations are fundamentally pretty simple...most eastbound traffic arrives in the early morning and connects onwards, and those flights return later that afternoon to connect to points westbound back again. If anything--and this is likely wishful thinking on my part--this will create some opportunity to open stations in locations that would otherwise not support a 757: in the States, cities such as MKE, IND, STL, PVD, etc. immediately come to mind.

Definitely an unexpected but fantastically exciting order for a great little airline!

-Mike
I plan on living forever. So far, so good...
 
SNATH
Posts: 3049
Joined: Mon Mar 29, 2004 5:23 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 12:39 am

Horus,

The 738s should look great in FI's c/s!

I couldn't agree more. the FI current color scheme is one of the most tasteful ones around. I love seeing their B757s at BOS when I leave out of Terminal E.

PHLBOS,

Although, the only surprise seems to be that they went for the 738 instead of the 739.

We can only assume that they actually wanted the extra range that they B738 has over the B739 (even though it is not all that much) and that probably they actually wanted a plane that is smaller than their B757s, instead of being roughly the same size. The former might also indicate that they will be getting winglets too (it's really funny how everyone here is always curious whether a new B737 order will be with winglets or not! it's usually the first question asked).

Tony
Nikon: we don't want more pixels, we want better pixels.
 
drerx7
Posts: 4203
Joined: Fri Jun 30, 2000 12:19 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 12:41 am

I would not have expected them to go for the 739s because they have shorter legs--the 738 will suit them fine--and honestly, I don't think the 757 not being produced anymore has anything to do with this order at all--these aircraft will surely compliment the 757 fleet not replace them.
Third Coast born, means I'm Texas raised
 
PHLBOS
Posts: 6504
Joined: Thu Apr 01, 2004 6:38 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 12:43 am

this will create some opportunity to open stations in locations that would otherwise not support a 757: in the States, cities such as MKE, IND, STL, PVD, etc. immediately come to mind.

WHAT??? While I can't necessarily speak for MKE, I do know that IND (TZ's hub), STL (former TW hub) and PVD can certainly support larger aircraft.

Here's a photo of a DL 757 at PVD taken in 2003.

View Large View Medium

Photo © T Silgrim



As a matter of fact, one AFC Championship football team (you guess the name) uses PVD (which is closer to Gillette Stadium than BOS) for their charter flights on DL. Being that their next trip will be for the Super Bowl over at JAX; I can assure you that the DL metal they'll be flying on will be larger than a 757.

Edited to add:

If you were only talking in terms of passenger volume (as opposed to airport size), then I can possibly see some validity in your statement.

[Edited 2005-01-26 16:48:02]
"TransEastern! You'll feel like you've never left the ground because we treat you like dirt!" SNL Parady ad circa 1981
 
TFJamie
Posts: 117
Joined: Thu Mar 04, 2004 6:16 pm

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 12:47 am

It will sadden us who like the c/s so well that they will probably not get that paint.

To elaborate on this matter, FI is NOT purchasing these planes for their own routes but as a basis for their new aircraft holding company that buys, sells and leases aircraft.

The plan, according to Icelandic news is to lease them around the world, China has been mentioned in this regard. They will be collaborating with aircraft leasing company Sunrock in marketing the aircraft.
 
Leskova
Posts: 5547
Joined: Wed Oct 08, 2003 3:39 pm

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 12:47 am

PHLBOS, I'm certain that the comment about those airports not being able to support something larger than a B737-800 was specifically about flights between them and KEF - not about the airport's ability to support those planes in general.

Nice order for FI and Boeing - is there anyone who actually saw this order coming? Because, so far, it really seems to have surprised all of us... me certainly included...

Regards,
Frank
Smile - it confuses people!
 
gkirk
Posts: 23345
Joined: Thu Jun 15, 2000 3:29 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 12:57 am

Nice order for Boeing, just a pity the a/c won'ty operate in Icelandair c/s  Sad
When you hear the noise of the Tartan Army Boys, we'll be coming down the road!
 
drerx7
Posts: 4203
Joined: Fri Jun 30, 2000 12:19 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 12:57 am

"It will sadden us who like the c/s so well that they will probably not get that paint.

To elaborate on this matter, FI is NOT purchasing these planes for their own routes but as a basis for their new aircraft holding company that buys, sells and leases aircraft.

The plan, according to Icelandic news is to lease them around the world, China has been mentioned in this regard. They will be collaborating with aircraft leasing company Sunrock in marketing the aircraft."

Well doesn't that throw-out everyones comments.  Nuts
Third Coast born, means I'm Texas raised
 
SNATH
Posts: 3049
Joined: Mon Mar 29, 2004 5:23 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 1:02 am

TFJamie and Drerx7,

You're absolutely right. This is also confirmed on the FI WWW site. Click here to see it (the link was pretty long to include it in the message).

It's 10 firm + 5 options.

Tony
Nikon: we don't want more pixels, we want better pixels.
 
ATLTraveler
Posts: 43
Joined: Wed Nov 24, 2004 7:56 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 1:24 am

Is it possible that some of these aircrafts will be used for AI low cost subsidery starting later this year ??
 
Mikey711MN
Posts: 1229
Joined: Fri Nov 07, 2003 4:19 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 2:03 am

PHLBOS, yes, I was speaking about whether those markets could fill a 737 vis-a-vis a 757. While I'm unsure of the specific runway requirements, I can't imagine that they differ too significantly between the two, but sorry for the relative lack of clarity all the same.

In light of other posts since, it appears as though the FI expansion theorizing has become moot anyway as these planes appear destined for other paint on them. Oh well!

-Mike

P.S. Thanks for helping with the clarification, Frank.  Smile
I plan on living forever. So far, so good...
 
HR001
Posts: 292
Joined: Wed Nov 17, 2004 5:09 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 2:59 am

 
Luv767s
Posts: 260
Joined: Fri Aug 15, 2003 7:26 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 3:02 am

The Icelandair site says:

"During the past 6 weeks The Flugleidir Icelandair Group has participated in the purchase of 16 aircraft. Among those are 3 Boeing 757-500 leased to Air Baltic Latvia and three Boeing 757-200s of which one is leased out but two used by Icelandair¿s network operation."

Do they really mean 737-500s or 757-300s instead of 757-500s?


the Boeing site confirms 737-500s.

[Edited 2005-01-26 19:04:37]
-"...never have I been a blue calm sea, I have always been a storm"
 
PHLBOS
Posts: 6504
Joined: Thu Apr 01, 2004 6:38 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 3:11 am

Among those are 3 Boeing 757-500 leased to Air Baltic Latvia

Wow, these must be super-stretch 757s  Wow!


Obviously a typo.
"TransEastern! You'll feel like you've never left the ground because we treat you like dirt!" SNL Parady ad circa 1981
 
mauriceb
Posts: 2150
Joined: Tue Aug 10, 2004 2:50 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 3:49 am

Think they might go to KLM, since they were saying that in the first couple of years they won't order any new aircraft type but are focusing on replacement of the older fleets with newer types already in the fleet

might see the last 13 737-400's go now...
 
A388
Posts: 7159
Joined: Mon May 21, 2001 3:48 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 4:34 am

Am I the only who read the article differently. The article states that these 738's will be leased out to other airlines, so will they not be used by Icelandair themselves? Read below sentences from the article:

"The Flugleidir Icelandair Group, Icelandair's parent company, will lease the airplanes to other carriers as part of its strategy to grow its business outside Iceland. The airline, based in Reykjavik , Iceland , has not announced customers for the airplanes."

I take it that Icelandair themselves won't be using these 738's, am I right?

Regards,

A388
 
neder99
Posts: 181
Joined: Thu Sep 21, 2000 9:53 pm

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 6:18 am

Those "757-500"s for Air Baltic are indeed 737-500s!

A388: You're right, Icelandair won't be using the new 737-800s themselves.
 
Lindy
Posts: 4722
Joined: Wed May 19, 1999 10:42 pm

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 6:31 am

All this comotion for nothing  Smile

Rafal  Smile (I'm laughing very hard )
BWIADCA - Nikon D100
 
COSPN
Posts: 1535
Joined: Fri Oct 12, 2001 6:33 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 6:38 am

Good news would make Indy happy.. 1st Int'l Atlantic Intl for IND  Smile

I'm going to guess a steady mix of both. Their operations are fundamentally pretty simple...most eastbound traffic arrives in the early morning and connects onwards, and those flights return later that afternoon to connect to points westbound back again. If anything--and this is likely wishful thinking on my part--this will create some opportunity to open stations in locations that would otherwise not support a 757: in the States, cities such as MKE, IND, STL, PVD, etc. immediately come to mind.

Definitely an unexpected but fantastically exciting order for a great little airline!

-Mike
 
gilesdavies
Posts: 2268
Joined: Tue Dec 02, 2003 7:51 pm

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 8:01 am

PRESS RELEASES

ICELANDAIR
"The Flugleidir Icelandair group to build aircraft leasing business
The Flugleidir Icelandair Group and Boeing today signed a purchase agreement for 10 Boeing 737-800s to be delivered in 2006 and purchase rights for five more aircraft of the same type.

This is the largest aircraft purchase agreement ever signed by the Flugleidir Icelandair Group. The total list price of the 10 aircraft is USD 650 million, the equivalent of ISK 40 billion. The Flugleidir Icelandair Group recognises the considerable hidden value in the deal. The USD 180 million advance payment is financed by KB bank in Iceland which also finalised its agreements with the Flugleidir Icelandair Group today. The Group was advised by HSBC Asset and Structured Finance, London.

This agreement is a big step in the establishment of aircraft leasing as a part of the Group¿s business. This will be handled by a separate subsidiary headed by Halldor Vilhjalmsson, presently Icelandair¿s SVP finance. The long term financing of the 10 aircraft will be through separate companies where the Group has minority stake and therefore the purchase will have minimum effect on the company¿s balance sheet.

The Flugleidir Icelandair executive chairman, Mr. Hannes Smárason, said at the signing today that the company had secured a very favourable price for the aircraft which would strengthen its position on the leasing market. The marketing of the aircraft is handled by the leasing company Sunrock, subsidiary of the Japanese trading house Sojitz. The target market is China where Sunrock is already signing up potential customers. The management of The Flugleidir Icelandair Group and Sunrock are very optimistic on the prospect of closing the leasing contracts for the aircraft in 2005.

The Boeing 737-800 are in great demand on the market. The Chinese aviation market is booming and as Sunrock has already created a position on the market it is in a good position to come to market with the new aircraft.

During the past 6 weeks The Flugleidir Icelandair Group has participated in the purchase of 16 aircraft. Among those are 3 Boeing 757-500 leased to Air Baltic Latvia and three Boeing 757-200s of which one is leased out but two used by Icelandair¿s network operation. Today¿s agreement for 10 new aircraft is however the largest step taken by the Group into the leasing market as of today.

The Boeing 737 aircraft are by far the most popular jet aircraft in history. In total Boeing has produced 5.530 aircraft of this type and every 5.3 seconds there is a Boeing 737 taking off somewhere in the world. Every minute there are on average 1.250 aircraft of this type flying somewhere in the world.



------------------------------------------------------


BOEING
"Boeing , Flugleidir Icelandair Group Announce Order for 10 Boeing Next-Generation 737-800s
SEATTLE, January 26, 2005 -- Boeing [NYSE: BA] and Flugleidir Icelandair Group today announced a firm order for 10 Boeing Next-Generation 737-800 airplanes plus five purchase rights. The value of the 10 firm aircraft is $650 million at list prices.

The Flugleidir Icelandair Group, Icelandair's parent company, will lease the airplanes to other carriers as part of its strategy to grow its business outside Iceland . The airline, based in Reykjavik , Iceland , has not announced customers for the airplanes. This is the first time the Icelandic company has purchased new airplanes for lease to other airlines. The company will work with its partner Sunrock to place the aircraft.

"This agreement holds tremendous potential for us," said Hannes Smarason, executive chairman of the board of the Flugleidir Icelandair Group. "Strong demand for the 737 among lessees and the 737's economic performance and investment value make it the best choice for our new leasing venture. We have already taken the first step into the leasing market with three Boeing 737-500s that we lease to Air Baltic in partnership with others and we see this deal as a critical step to develop this business further."

Boeing begins delivering the airplanes early next year. With today's purchase the Flugleidir Icelandair Group remains an all- Boeing customer.

"Today's announcement is great news for the 737, and we are gratified that Boeing will continue to play a strong role in Flugleidir Icelandair's growth plan for the future. A fantastic airplane, a competitive offering and our 30 years of experience with Icelandair helped make today's milestone achievable," said Marlin Dailey, vice president of sales for Europe and Central Asia , Boeing Commercial Airplanes.

The Next-Generation 737 is the fastest-selling airplane of all time. It's also the newest and most technologically advanced and efficient single-aisle airplane in its class. Boeing has delivered more than 1,600 Next-Generation 737s.


[Edited 2005-01-27 00:02:47]
 
A388
Posts: 7159
Joined: Mon May 21, 2001 3:48 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 8:43 am

Icelandair is indeed a great airline, you never hear much from them and they've always managed to keep flying without much trouble. I wish them all the best... Big grin

A388  Wink/being sarcastic
 
User avatar
OzarkD9S
Posts: 4720
Joined: Tue Oct 23, 2001 2:31 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 8:54 am

Are these replacements for 734's? I guess when the time comes they'll go with the 7E7 to replace the 757's.
Next up: STL-OAK-RNO-LAS-ICT-STL
 
neder99
Posts: 181
Joined: Thu Sep 21, 2000 9:53 pm

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 9:43 am

I suggest reading the whole thread.

The new 738s are NOT replacing any of Icelandair's current aircraft.
Their destined solely for leasing to third parties, thus will NOT be used by Icelandair as part of their core operation.

The 734's went out quite a few years ago.
 
777ER
Crew
Posts: 9853
Joined: Fri Dec 19, 2003 5:04 pm

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 10:03 am

Way to go Icelandair and Boeing  Big thumbs up

Any idea on who will get the B738s?
 
User avatar
ERJ170
Posts: 5467
Joined: Thu Apr 15, 2004 11:15 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 10:21 am

Not meaning to sound stupid, and wishing no derogatory remarks towards myself or my education..

but I did not know that Iceland was part of North America.. I always thought it was part of Europe.. but on the website.. they call themselves Icelandair North America.. if that for real?
Aiming High and going far..
 
neder99
Posts: 181
Joined: Thu Sep 21, 2000 9:53 pm

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 11:17 am

Iceland IS actually part of Europe, always has been, always will be.

The Icelandair North America website is its website for the North American market! (www.icelandair.com)
The website for Iceland is www.icelandair.is
For the UK: www.icelandair.co.uk ...and so forth.

For example on the UK & Ireland website the header reads "Icelandair UK & Ireland", however it doesn't mean Iceland is part of the UK!

 
gearup
Posts: 514
Joined: Fri Dec 22, 2000 9:23 am

RE: Icelandair Order 10 737-800

Thu Jan 27, 2005 11:20 am

Great news, I hope they don't delete the eyebrow windows. I always liked that feature of the classic Boeing nose.

GU
I have no memory of this place.