Jet Airways Converts Option for 17 Boeing Planes
NEW DELHI – Jet Airways (India) Ltd. has exercised an option to buy 17 single-aisle 737-800 planes from Boeing Co., a senior executive at India's largest airline by market share said Friday.
"Yes, we have converted an option for 17 jets into a firm order," said the executive, who declined to disclose the value of the deal for the short-to-medium range planes.
At list prices, the contract is worth about $1.4 billion, though customers generally negotiate steep discounts.
The order comes at a time when Jet is trying to cut operating costs, especially that of jet fuel. Intense competition also hasn't allowed the carrier to raise fares much to cover those costs. Jet Airways posted a net loss of 7.14 billion rupees ($138 million) in the quarter ended Sept. 30, 2011, compared with a year-earlier net profit of 124 million rupees.
Chicago-based Boeing says the 737 is its best-selling commercial airliner with more than 8,800 orders. The aircraft is offered in four versions with a seating capacity of 110 to 220 passengers.
Swati Rangachari, a spokeswoman for Boeing India, declined to comment.
The Jet executive said the new planes will be inducted into the fleet over the next one-and-a-half years and will be used to replace planes that are currently on lease by Jet.
Mumbai-based Jet has a fleet of 100 planes, including 43 737-800 aircraft. The airline owns about 40 of those planes, with the remainder on lease.
The airline, which began operations in 1993, offers flights to 76 cities, including 24 international destinations such as London, Dubai, Hong Kong, Toronto, New York and Brussels.
Jet Airways Converts Option for 17 Boeing Planes - WSJ.com