Iceland’s international airline, Icelandair, has told Boeing it intends to order 12 of the company’s new 737 Max airliners.
The airline, whose hub is in Reykjavik, said it intends to acquire eight 737 Max 8s and four 737 Max 9s. The Max 8s will be configured with 153 seats. The Max 9s will hold 172 passengers in Icelandair’s seating configuration.
Icelandair’s fleet now consists of Boeing 757s
At list prices, those 12 aircraft are valued at $1.2 billion. The airline said it wants purchase rights for an additional 12 of the planes.
Final details of the airline’s order remain to be ironed out.
The aircraft will be built in Boeing’s Renton plant. The 737 is the world’s best-selling jet airliner. The single-aisle plane is powered by two engines.
The 737 Max will feature new engines and aerodynamic improvements designed to improve fuel economy by 13 percent and to increase range over the present 737 Next Generation. The first of the Max aircraft is due to enter commercial service with Southwest Airlines in 2017.
The planes will supplement Icelandair’s fleet of 16 183-seat Boeing 757 jets.
Icelandair connects U.S. cities including Seattle to European cities through Reykjavik.
The airline has also talked with Boeing rival Airbus about ordering new planes.