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Icelandair Finalizes Order for 16 Boeing 737 MAXs

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Icelandair has signed a firm order with Boeing for 16 737 Max airplanes, valued at more than $1.6 billion at list prices.

The order, originally announced as a commitment for 12 airplanes in December 2012, has been increased to 16 airplanes and includes 737 Max 8s and 9s, as well as purchase rights for eight additional 737 Maxs.

"The 737 Max will complement our Boeing 757 operations seamlessly and allow us to continue our route expansion in the most fuel-efficient manner," said Bjorgolfur Johannsson, Icelandair Group president and CEO.

The 737 Max incorporates the latest-technology CFM International LEAP-1B engine. Boeing says that airlines operating the 737 Max will see a 13% fuel-use improvement over today's most fuel-efficient single-aisle airplanes.

"The 737 Max will be an excellent addition to Icelandair's all-Boeing fleet, enabling the carrier to expand its operations across Europe and North America with increased fuel efficiency, route flexibility and passenger comfort," said Todd Nelp, vice president of European Sales, Boeing Commercial Airplanes.

The Icelandair Group currently operates a fleet of 23 Boeing 757 airplanes for both its passenger and cargo operations. The Icelandic carrier has used the geographical location of its Reykjavik-based hub mid-way between North America and Europe, as an opportunity to build an ever-growing network of more than 35 international destinations.

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