Industry

Jet orders 75 more Boeing 737

File picture for representation purpose only.

File picture for representation purpose only.   | Photo Credit: Reuters

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Carrier’s order tally for 737 MAX touches 225; ‘airline making large-scale bets’

Jet Airways (India) Ltd., India’s second-biggest airline in terms of market share, has placed an order for an additional 75 Boeing 737 MAX aircraft, valued at more than $9 billion on a list-price basis, to support its ambitious growth plans.

This is in addition to the 150 Boeing 737 MAX aircraft which the airline had ordered in two tranches of 75 each in November 2015 and April 2018 respectively.

The new order takes the total to 225 aircraft worth more than $25 billion at list price. However, airlines get discounts while placing bulk orders with aircraft manufacturers. “The company has entered into another agreement with The Boeing Company for purchase of an additional 75 Boeing 737 MAX aircraft,” Jet Airways informed the stock exchanges on Monday.

A senior company executive confirmed the new order and said deliveries from this order will commence from 2025. “Yes we will take delivery of 225 Boeing 737 MAX aircraft and delivery has started,” the official said.

Commenting on the new order, Kapil Kaul, CEO and director, South Asia, Centre for Asia Pacific Aviation said, “It is a significant decision which indicates that Jet Airways is making large-scale bets.” Last week, Jet received the first 737 MAX from Boeing. The plane is said to deliver double-digit improvement in fuel efficiency.

Domestic expansion

“The new 737 MAX is a critical element to our future growth strategy and we are proud to become the first airline in India to introduce this brand new airplane to our customers,” Naresh Goyal, Chairman, Jet Airways said in a recent statement.

The 737 has been the backbone of Jet Airways’ fleet for many years. Out of its total fleet of 119 aircraft, 82 are Boeing 737s.

The new planes from the first order will replace the ageing fleet and the rest will be used for expansion in the domestic market and nearby countries.

“Getting so many narrow-body planes means Jet does not have long-haul ambitions,” said an analyst, asking not to be named.

Indian airlines have ordered 972 planes. IndiGo, with 168 planes in its fleet, has 436 planes on order. As per a Boeing forecast, Indian airlines will place orders of over 2,100 planes in 20 years.

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Printable version | Dec 15, 2019 11:27:32 PM | https://www.thehindu.com/business/Industry/jet-orders-75-more-boeing-737/article24255501.ece

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