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Jet Airways to buy 75 Boeing jets worth $8.8B
Reuters
Last Updated IST
The South Asian island nation is facing severe shortages of food, fuel and other essentials, along with sharp price rises and crippling power cuts.
The South Asian island nation is facing severe shortages of food, fuel and other essentials, along with sharp price rises and crippling power cuts.

Jet Airways Ltd has entered into an agreement to buy 75 Boeing Co 737 MAX narrowbody jets, worth $8.8 billion, to meet passenger demand which has shown no sign of abating after years of growth.

Jet Airways, in a filing to the stock exchange late on Tuesday, did not say whether the agreement was a formal order or a non-binding memorandum of understanding.

Boeing did not respond to a request for comment.

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The jets would be worth $8.8 billion at list prices, though airlines typically receive significant discounts from manufacturers.

Shares of Jet Airways rose as much as 3.2 percent in Wednesday morning trade and were trading up 1.4 percent. The wider Mumbai market was up 0.25 percent.

The latest agreement comes as Indian airlines rush to expand fleets to meet an ever-increasing demand for domestic as well as international flights, making it one of the most targeted sales markets for Boeing and European rival Airbus SE.

Boeing said in July it expected Indian airlines to order up to 2,100 aircraft worth $290 billion over the next 20 years, calling it the highest-ever forecast for Asia's third-largest economy.

Domestic passenger traffic increased 17.9 percent in January from a year earlier for the 41st consecutive month of double-digit growth, showed data from the International Air Transport Association.

Jet Airways Chief Executive Vinay Dube last month told reporters the airline was hoping to close the latest deal by the end of March.

The airline finalised a separate deal to buy 75 other Boeing 737 MAX aircraft last year.

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(Published 04 April 2018, 11:56 IST)