Etihad-backed Jet Airways places $8bn order for 75 Boeing jets

Jet Airways aircraft stand on tarmac at the domestic airport terminal in Mumbai, India. The carrier will buy 75 Boeing MAX 737 planes. Punit Paranjpe/Reuters

India's Jet Airways, which is 24 per cent owned by Abu Dhabi’s Etihad Airways, has entered into an agreement to buy 75 Boeing 737 Max narrow-body jets, worth $8.8 billion, to meet passenger demand which has shown no sign of abating after years of growth.

Jet Airways, in a filing to the stock exchange late on Tuesday, did not say whether the agreement was a formal order or a non-binding memorandum of understanding.

Boeing did not respond to a request for comment.

The jets would be worth $8.8bn at list prices, although airlines typically receive significant discounts from manufacturers.

Shares of Jet Airways rose as much as 3.2 per cent in Wednesday morning trade, and were trading up 1.4 per cent at 06.10 GMT. The wider Mumbai market was up 0.25 per cent.

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The latest agreement comes as Indian airlines rush to expand fleets to meet ever-increasing demand for domestic as well as international flights, making it one of the most targeted sales markets for Boeing and European rival Airbus.

Boeing said last July it expected Indian airlines to order up to 2,100 aircraft worth $290bn over the next 20 years, calling it the highest-ever forecast for Asia's third-largest economy.

Domestic passenger traffic increased 17.9 per cent in January from a year earlier for the 41st consecutive month of double-digit growth, showed data from the International Air Transport Association.

Jet Airways chief executive Vinay Dube last month told reporters the airline was hoping to close the latest deal by the end of March.

The airline finalised a separate deal to buy 75 other Boeing 737 Max aircraft last year.