An agreement has been reached by Jet Airways Ltd. to purchase 75 Boeing 737 MAX jets. The overall worth of the deal is $8.8 billion.
Jet Airways has been growing considerably over the past few years, and the increasing number of passengers has urged the company to add more planes to its portfolio. The company, however, did not reveal whether it was a non-binding memorandum of understanding or a formal order. Neither did Boeing.
Although the deal is worth $8.8 billion, manufacturers usually offer significant discounts to airlines. Jet Airways’ shares increased by 3.2% in the morning trade on Wednesday, and were recorded trading at 1.4% at 0610 GMT.
The demand for international flights as well as domestic flights has been rising consistently and Indian airlines have been expanding their fleets as a result. In July 2017, Boeing released a statement saying that Indian airlines could place orders for around 2,100 aircrafts over the coming 20 years, adding that the overall worth of the transactions would be around $290 billion.
The traffic so far as domestic passengers are concerned has risen by 17.9% in January 2018 in comparison with January 2017. The International Air Transport Association disclosed data according to which this was the 41st month in a row with a double-digit growth.
Vinay Dube, the Chief Executive of Jet Airways, recently said that the deal could be closed before the start of April. However, another deal to purchase 75 other Boeing 737 MAX airplanes was finalised last year.