Naresh Goyal-promoted Jet Airways is set to buy 75 additional 737 Max 8 aircraft from American plane maker Boeing in a deal valued at $8.8 billion at current list prices. The deal was inked by the two companies at the Farnborough International Air Show in the UK.
“The Max will allow us to offer guests a superior and well differentiated experience using a modern, reliable and fuel efficient fleet. The order also emphasizes Jet Airways' commitment to the growth and potential of the Indian aviation market,” said Naresh Goyal, chairman of Jet Airways.
The latest order will help Jet expand its network further in India, which is among the fastest growing aviation markets in the world, recording double digit passenger growth for four straight years. Including this latest deal, Jet Airways will be buying 225 Boeing 737 Max airplanes in total over the next several years.
Last month, the airline had taken delivery of the first 737 Max airplane and 11 of these planes are to be inducted into its fleet by March, 2018. Apart from added comfort, the airplanes offer better fuel efficiency due to new engines and other improvements, which will in turn help cut costs.
In a recent interview to THE WEEK, Amit Agarwal, deputy CEO and CFO, had said that the airline will be able to serve more overseas destinations with this new narrow body aircraft given its longer range, while also adding capacity on various existing domestic routes.
“Domestic operations will continue to be a major backbone for us. But, these aircraft also have a longer range. So, on this aircraft I can go as far as Kuala Lumpur, I can go to Kenya. So, all these destinations, which were not possible to be covered by the narrow body aircrafts, we will be able to cover with the 737 Max,” Agarwal had said.
Jet Airways, the country's second largest airline by market share, currently has a fleet of nearly 120 airplanes flying to over 60 destinations in 15 countries.