Naresh Goyal-led Jet Airways announced an order for 75 Boeing 737 Max aircraft at the Dubai Airshow on Monday, the airline’s largest-ever fleet order, in a deal valued at over $8 billion (over Rs 53,000 crore) at list price.
The order includes options and purchase rights for an additional 50 aircraft. “The new aircraft will support Jet Airways’ replacement strategy and ensure it maintains a modern, environmentally friendly fleet,” Jet Airways, the country’s second-largest airline by market share, said in a statement. It currently has a fleet of 115 aircraft.
The deliveries from the latest order will begin in 2018. “The transaction will be completely financed and managed through a sale and leaseback arrangement when Jet Airways takes delivery of the aircraft,” the airline said.
“This order is an endorsement of our confidence in the long-term prospects of the Indian aviation sector, which reflects the positive forecast for the country’s economy, and offers tremendous potential for growth and development,” Jet Airways chairman Naresh Goyal said.
Rival and market leader IndiGo has on order over 400 A320 Neos, while the Wadia group-promoted GoAir has on order 72 Neos. Budget carrier SpiceJet has on order 42 Boeing B737 Max planes and Air India plans to lease around 15 planes in the next two years.
“These new-generation aircraft are highly fuel efficient and will help drive our operational efficiency,” said Cramer Ball, chief executive officer, Jet Airways.