Boeing and Aerolineas Argentinas, the flag carrier of Argentina, have completed an agreement for 20 Next-Generation 737-800 airplanes.

The agreement, valued at $1.8 billion at list prices, will play a key role in Aerolineas Argentinas’ continued efforts to modernise its fleet and increase passenger satisfaction.

At a signing ceremony in Buenos Aires today, Mariano Recalde, president, Aerolineas Argentinas and Austral Lineas Aereas, and Van Rex Gallard, vice president of sales, Latin America, Africa and the Caribbean for Boeing Commercial Airplanes, formalised the agreement, which will help Aerolineas build on a fleet of 26 Next-Generation 737s currently operated by the Argentine carrier.

“This is a landmark order for our company, both in the number of aircraft and in what they signify for our fleet,” said Recalde.

“This agreement is a key part of a greater plan to renew our fleet and prepare our operations to accommodate growing demand.

“The Boeing Next-Generation 737-800, which has more seats than our current single-aisle fleet, will give us more flexibility to operate both domestic and regional routes.”

Gallard noted that the agreement extends a long legacy of partnership between Boeing and Aerolineas Argentinas.

“Our partnership with Aerolineas extends back to the days of the Douglas DC-3,” he said.

“We have worked side by side with Aerolineas to help provide world-class aviation to the people of Argentina.”

The Argentine government’s investment in the Next-Generation 737 helps build the foundation for industrial development in Argentina, providing capacity to fuel its economic objectives.

At the heart of Argentina’s domestic and intra-South American network, the 737 fleet will unlock demand for air transport there and shape its infrastructure modernisation.