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Jet Airways has placed an order for 75 more 737 MAX 8 airplanes during a signing ceremony at the 2018 Farnborough International Airshow.
The order, valued at $8.8 billion at current list prices, was previously posted as unidentified on Boeing's Orders and Deliveries website.
Jet Airways made a similar order for 75 MAX aircrafts in October last year, the first of which has already been inducted in the airline’s fleet. This order for more airplanes helps the Indian carrier expand its network to meet the surging demand.
“Our latest order for 75 additional Boeing 737 MAX aircraft reflects our long standing association with Boeing and reposes our faith in the aircraft they manufacture," said Naresh Goyal, Chairman, Jet Airways.
“The MAX will allow us to offer guests a superior and well-differentiated experience using a modern, reliable and fuel-efficient fleet," he said.
In June, the Mumbai-based carrier took delivery of its first MAX, a new and improved 737 that delivers a double-digit improvement in fuel efficiency and improved passenger comfort.
According to industry data, domestic air traffic has grown about 20 per cent in each of the past four years.
The MAX aircrafts could help the airline improve profitability by allowing it to use this narrow body aircraft to fly to farther destinations including several countries in Africa or the CIS countries. Travelling long distances using a narrow-body aircraft reduces the airline’s cost per seat.
Facing pressure
Jet Airways, which booked losses of ₹1,036 crore in the quarter ended March 31 compared with a profit of ₹ 602.4 crore in the same quarter last year, is working hard to get back to profitability.
Increasing fuel costs are putting higher pressure on the company’s profits, and given the role played by fuel costs in the airline operations, getting fuel-efficient fleet is important for Jet.
The airline is also facing severe pressure from investors who saw its net worth turning negative in March 2018 after it reported a quarterly loss for the first-time in 11 quarters.
The 737 MAX is the fastest-selling airplane in Boeing history, accumulating more than 4,600 orders from over 100 customers worldwide.
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