Boeing and Icelandair announced a commitment for 12 737 MAXs, valued at more than $1.2bn at list prices. The commitment by the Icelandic carrier includes 737 MAX 8s and 9s.

Only yesterday we speaking with an industry analyst about this very airline and its need to start replacing its 757s.   We suggested that MAX was the way the airline would probably go.  The analyst was in the Airbus camp.  We both agreed though that neither the 9MAX or the A321neo would handle the range to Seattle from Reykjavik.

Imagine our surprise then today to see this announcement.  How will the airline handle the long hauls it flies?  In our discussion yesterday we agreed that absent sufficient range the airline would have to upgrade to something with longer legs; like the A330 or the 787.  It seems then that Icelandair's fleet renewal isn't done.  The MAXs on order will be great for regional flights and even easily reach the North American east coast. But take a look at the airline's route map.

Seattle, Minneapolis and Denver (perhaps even Orlando) need something with more reach. No doubt Boeing is working on a follow on offer the airline can't resist – before Mr Leahy gets in with a killer A330 deal.