Jet agrees to buy 75 Boeing 737 MAXs

MUMBAI: Indian airline Jet Airways has entered an agreement to buy 75 Boeing 737 MAX aircraft in a deal that could be worth more than $7 billion.

The country’s second-largest airline made the announcement to the Mumbai stock exchange late Tuesday.

The company did not specify which model of the narrow-body jet it planned to purchase, or whether it had placed a firm order rather than a memorandum of understanding.

The deal could be worth anywhere between $7.2 billion and $9.7 billion, depending on the type of jet acquired and based on list prices.

Airlines often negotiate discounts on major orders.

India is witnessing a boom in air travel as its growing middle class takes to the skies. Airlines are rapidly expanding their fleets to capture a slice of this market.

There has been a six-fold increase in passenger numbers over the past decade as Indians take advantage of better connectivity and cheaper fares thanks to a host of low-cost airlines.

The Centre for Aviation based in Australia predicts India will overtake Britain as the world’s third-largest market by 2025 and will have 478 million fliers by 2036.

India’s largest airline IndiGo last year announced a deal to buy 50 small planes from French manufacturer ATR.

The majority of Jet Airways’ fleet are Boeing aircraft.

Boeing says the 737 MAX is the fastestselling airplane in its history, with more than 4,300 orders received.