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In its largest ever aircraft deal in its over-two-decade history, Jet Airways on Monday ordered 75 Boeing 737 Max 8 aircraft. At list price, the order is valued at $7.5-8 billion although aircraft manufacturers are known to sell aircraft below the list price, especially when more than one plane is ordered.
The deal was announced at the Dubai Air Show. The order includes the option to buy 50 additional aircraft. Jet will take delivery from 2018 onwards and the deal will be financed through a sale-and-leaseback arrangement, the airline said in a statement. Jet Airways will be the first airline in India to take delivery of the Boeing 737 Max 8 aircraft.
Monday’s order includes the airline’s 2013 announcement of acquiring 50 Boeing 737 Max aircraft. With an additional order of 25 aircraft, the airline has now placed an order for 75 Boeing 737 Max 8 aircraft.
Jet Chairman Naresh Goyal said the order was an endorsement of the airline’s confidence in the long-term prospects of the Indian aviation sector, and offers tremendous potential for growth and development.
“These new generation aircraft are highly fuel efficient and will help drive our operational efficiency,” said Cramer Ball, Chief Executive Officer, Jet Airways.
Jet’s order for 737 Max is still far behind rival IndiGo’s order of 250 Airbus A320 neo single-aisle jets in August, taking its overall A320 neo orders to 530.
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