Jet Airways to buy 75 Boeing 737 MAX
04 April 2018
Jet Airways announced that it is buying 75 Boeing 737 MAX aircraft from the Boeing Company to meet growing demand in India.
The aircraft, a narrow body jet, would be worth more than $9 billion, but with discounts the airline is expected to pay just about $8 billion to $8.5 billion.
The airline gave a single sentence notice to the stock markets. Expectedly, the company shares fluctuated sharply, hovering between Rs600 and Rs630 on Wednesday.
India is one of the few rapidly expanding civil aviation markets in the world and all the private domestic carriers including Jet, IndiGo, SpiceJet, GoAir and AirAsia India have placed orders running into billions of dollars with both Boeing and Airbus.
Along with Jet, SpiceJet too has placed orders with Boeing for the 737 MAX. It has ordered for more than 200 aircraft.
Indigo and GoAir also have placed huge orders with Airbus. Indeed, IndiGo has one of the largest order books in the world, and aims to buy 450 aircraft (mostly A320neo jets) over the next few years. Air Asia too plans to add another 60 aircraft to its fleet over the next five years.
Airline analysts expect Jet Airways and SpiceJet to continue placing more orders over the coming months to meet the growing demand for travel, both within India and abroad.