India’s carrier to buy 75 jets in multi-billion dollar order

MUMBAI - Agence France-Presse

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 on April 3. 

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.