Jet Airways in major Dubai Airshow purchase

AFP: India’s Jet Airways injected life Monday into the Dubai Airshow, confirming an order for 75 Boeing 737 planes worth $ 8.25 billion at list price.

The order, already listed on Boeing’s books under an undisclosed client, was the sole large deal for plane purchases to be announced since the show opened Sunday.

Little was expected in terms of sales of new planes at the biennial show, as Gulf carriers – the usual big spenders, already have long lists of orders.

Organisers say the last edition of Dubai Airshow generated business of up to $ 200 billion (185 billion euros), with orders for planes in the first few hours alone topping $ 162.6 billion, beating the show’s previous record of $ 155 billion set in 2007.

Jet Airways’ order, “previously attributed to an unidentified customer, includes conversions of 25 Next-Generation 737s to 737 MAX 8s, as well as options and purchase rights for an additional 50 aircraft”, Boeing said in a statement released at a joint press conference.

“The announcement marks the largest order in Jet Airways’ history and supports the airline’s replacement strategy,” the statement said.

The Boeing 737 MAX 8 plane costs $ 110 million at list price, bringing the total value of the deal to an estimated $ 8.25 billion.

The carrier, partly owned by Etihad Airways, has a fleet of 115 aircraft.

“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,” said Jet Airways Chairman Natesh Goyal.

The single-aisle being developed by the US manufacturer is touted as being more cost effective than its competitors.