Recently, renowned Indian Airline Firm Jet Airways deal with Boeing for multiple aircraft got finalized yesterday. Jet Airways deal with Boeing includes 75 aircraft of its 737 MAX aircraft. Boeing is one of the renowned American airline manufacturing company across the world. Also, Jet Airways has placed a second order of the aircraft of this size in many years.
For Jet Airways, the 75 737 MAX aircraft is estimated to cost around $7.2 billion and $9.7 billion. It is also based on the variation in the features, designs and the variants of 737 MAX which jet will choose to purchase from Boeing.
As per the sources, the most recent 75 aircrafts order is made for 8 variant of 737 MAX aircraft.
Why this deal took place
Indian airlines majorly looking towards Boeing for multiple aircraft orders. This is to fulfill the rising demand for international as well as domestic flights. As per the data released by the International Air Transport Association the significant growth is observed in the domestic passenger air traffic. As per the data, this domestic air traffic is raised to 17.9 percent in January. It is a high rise when compared to the previous year.
The high increase in the air traffic from the last few years is expected to create a huge market for the aircraft manufacturing giants across the world. India is emerging as the most lucrative sales market for the global aircraft business leads like Boeing and Airbus SE.
Jet airways totally depend on Boeing Jets
The Indian carrier’s feet heavily depend upon the Boeing aircraft and jets. The jet airways company comprises 60 percent of 737-800 aircraft. The airline has a total fleet of over 120 aircraft. It includes Boeing 737s and ATR 72s, Boeing 777-300 and Airbus A330s.
Similarly, the other Indian career fleet giant SpiceJet also finalizes Boeing for multiple aircraft. It confirms a big order of over 120 737 MAX aircraft. Both the known Indian airliners are waiting for their first supplies.
What is 737 MAX
The 737 MAX is a reformed form of Boeing’s enormously prevalent 737 platforms. It is a twin-jet narrow-body. Also, it has an ability to between 130 and 230 passengers, on the basis of a variant. There is various airlines company across the world who are dealing with Boeing for multiple aircraft of this 737 platform from the year 2011. So, the popular aircraft manufacturer had already received around 4400 orders up till now. The company is projected to give 86 supplies.
As per the Boeing website, the present citation price of a Boeing 737 MAX 8 aircraft is $117.1 million. So on the basis of this rate, the total cost of 75 such aircraft would be around $8.8 billion.
What CEO of Jet Airways had to say about Jet Airways deal
Last month Vinay Dube a CEO of Jet Airways had stated to the reporters,” that the airline hoped to finalize the deal with Boeing by the end of March.
He said that in the Wednesday morning trade the Jet Airways shares raised to 3.2 percent. It is closed to 1.5 percent lower, in line with the broader tendency.
Furthermore, he said that”Our new order for the additional 75 Boeing 737 MAX aircraft will provide best customer experience. This will allow us to deliver a differentiated and world-class customer experience to our guests,”
Last year also Boeing supposes Indian airlines to order for multiple aircraft. it predicted to get up to 2,100 aircraft. Also, it cost around $290 billion in the coming 20 years. Boeing recognized this forecast as the highest-ever forecast which is made for the third-largest economy of Asia.
The growing orders by the Indian airline to Boeing for multiple aircrafts will surely raise the profit value and customer base of Boeing.