Jet Airways in negotiations to buy 50 aircraft
Jet Airways India, the country’s biggest full-service carrier, was in talks to buy 50 narrow-body aircraft on top of a pending order for Boeing 737 Max aircraft, a person with direct knowledge of the plan said.
The most likely model the airline was considering was the 737 Max, though it was also looking at Airbus SE’s A321neo, as well as the 737 Max 10 — a stretched version Boeing may introduce in Paris in June, the person said.
Jet Airways could sign the deal in the next two months for deliveries starting 2024, the person said. The order could be worth about $5.6bn.
Jet Airways continuously reviewed its fleet in response to demand, but would not comment on speculation, a spokesman said.
A representative for Boeing said that the aircraft maker was in constant communication with airlines in India about their needs, but did not discuss specific conversations publicly.
An Airbus spokesman declined to comment.
Jet Airways, in which Abu Dhabi’s Etihad Airways PJSC owns a 24% stake, is expanding its fleet as competition intensifies in India, one of the world’s fastest-growing aviation markets, where carriers offer cutthroat, below-cost fares to attract passengers.
The Indian carrier made its first annual profit in seven years in the 12 months to March 2016, mainly due to a drop in oil prices — the biggest cost for an airline.
SURGING DEMAND
Airlines in Asia are ordering hundreds of new aircraft to meet demand as an emerging middle class spends more of its disposable income on air travel.
In India, market leader IndiGo has ordered 430 A320neos and is in talks to buy 50 ATR turboprop aircraft, while budget carrier SpiceJet has ordered as many as 205 Boeings.
The 737 Max is the fastest selling aircraft in Boeing’s history, with 3,700 orders from 87 customers from around the world, according to the company’s website.
In 2015, Boeing said Jet Airways had an order for 75 Max 8 variants. The list price of the Max 8 is $112.4m, before customary discounts for large orders.