Airline Inks $8 Billion Boeing Deal for 75 737s

Boeing locked in an $8 billion deal with India’s Jet Airways for 75 737s.

The Boeing Company announced Tuesday it sold 75 of its 737 MAX 8 aircraft to India’s Jet Airways at the 2015 Dubai Airshow.

Bloomberg News reported that the deal is worth an estimated $8 billion. The order has been on Boeing’s books for nearly two years with the buyer previously not named.

The contract is Jet Airways’ largest order to date and reflects the airline’s move to collect a more modern and environmentally progressive airplane fleet. The order includes conversions of 25 Next-Generation 737s to 737 MAX 8s, in addition to options and purchase rights for an additional 50 aircraft.

“Boeing is proud that Jet Airways will be the first airline in India to take delivery of the 737 MAX,” said Boeing Commercial Airplanes President and CEO Ray Conner in a joint press release with Jet Airways. “The 737 MAX will bring new standards for fuel efficiency and economics, and a premium passenger experience to Jet Airways.”

Boeing’s new single-aisle airplane reduces fuel usage by 20 percent from it’s first Next-Generation 737s and maintains the lowest operating costs in its class, 8 percent per seat less than its nearest competitor.

“Incorporating the latest design and technology features, the highly efficient 737 MAX will allow us to drive our operational efficiency and reaffirms our commitment to providing a best-in-class full service travel experience to our guests,” Naresh Goyal, chairman of Jet Airways, said in the press release. “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 is the second largest airline in India, both in market share and passengers, and operates over 300 flights daily to 74 destinations worldwide.

FlyerTalk reported on November 5 that Boeing expects long-term global demand for 38,050 new airplanes, valued at $5.6 trillion, over the next 20 years. The company said it expects Middle East demand to play a growing role in its orders in that period. Boeing values future Middle East demand at roughly $730 billion or 3,180 planes. Seventy percent of demand is expected from the region’s rapid fleet expansion.

“Traffic growth in the Middle East continues to grow at a healthy rate and is expected to grow 6.2 percent annually during the next 20 years,” said Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, in a press release. “About 80 percent of the world’s population lives within an eight-hour flight of the Arabian Gulf. This geographic position, coupled with diverse business strategies and investment in infrastructure is allowing carriers in the Middle East to aggregate traffic at their hubs and offer one-stop service between many city pairs that would not otherwise enjoy such direct itineraries.”

Boeing, headquartered in Chicago, is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems with customers in 150 countries. The company manufactures Boeing manufactures the 737, 747, 767, 777 and 787 airplanes and the Boeing Business Jet. Over 10,000 Boeing-built commercial jetliners operated worldwide, consisting of 48 percent of the world fleet.

The Dubai Airshow commenced on November 8 and will conclude Thursday.

[Photo: Boeing Company]