India’s Jet Airways to buy 75 Boeing jets in multi-billion dollar order
View(s):Indian airline Jet Airways has entered into an agreement to buy 75 Boeing 737 MAX aircraft in a deal that could be worth more than $7 billion, the country’s second-largest airline said recently in an announcement to the Mumbai stock exchange.
The company did not specify which model of the narrow-body jet it planned to purchase, or whether it had placed a firm order rather than a memorandum of understanding.
The deal could be worth anywhere between $7.2 billion and $9.7 billion, depending on the type of jet acquired and based on list prices. Airlines often negotiate discounts on major orders, the statement said.
India is witnessing a boom in air travel as its growing middle class takes to the skies. Airlines are rapidly expanding their fleets to capture a slice of this market.
There has been a six-fold increase in passenger numbers over the past decade as Indians take advantage of better connectivity and cheaper fares thanks to a host of low-cost airlines.
The Centre for Aviation based in Australia predicts India will overtake Britain as the world’s third largest market by 2025 and will have 478 million fliers by 2036.
India’s largest airline IndiGo last year announced a deal to buy 50 small planes from French manufacturer ATR.
The majority of Jet Airways’ fleet is Boeing aircraft. Boeing says the 737 MAX is the fastest-selling airplane in its history, with more than 4,300 orders received.
Vinay Dube, Chief Executive Officer, Jet Airways said, “This additional order re-emphasises our trust and confidence in Boeing and also reaffirms our commitment to operate extremely modern, reliable and fuel efficient aircraft as part of our fleet.
He added: “Jet Airways’ partnership with Boeing goes back 25 years ever since the airline was conceived and took to the skies. This order underscores Jet Airways’ commitment to the growth and sustainability of the Indian aviation market.”
The 737 MAX family of airplanes offers 130 to 230 seats with the ability to fly up to 3,850 nautical miles (7,130 kilometers). They incorporate the latest CFM International LEAP-1B engines, Advanced Technology winglets, the Boeing Sky Interior and large flight deck displays.