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Asia Today ISSN 1861-4604 Monday, July 23, 2018

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Tui Travel buying 60 Boeing 737 MAX aircraft for $6.1bn

Tui operates 141 aircrafts across six European airlines

Share on Facebook May 31, 2013, Reporter : BigNewsNetwork, Reader : 652

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LONDON - Leading leisure tour operator Tui Travel has agreed to buy 60 Boeing 737 MAX aircraft, with an option to buy a further 90 planes of the same model, the British company stated Friday.

Tui said it was buying the 60 planes at a "substantial" discount to the list price of $6.1billion (4billion pounds).

Tui operates 141 aircrafts across six European airlines - Thomson Airways, Tuifly, Tuifly Nordic, Arkefly, Jetairfly and Corsair - and expects to improve boost fuel efficiency through the acquisition of new fleet.

Boeing says its 737 MAX plane will burn 13% less fuel than other 737 models.

The order comes as a major boost for US based plane maker Boeing, which went through several difficult months following the grounding of its Dreamliner aircraft by airlines across the globe following problems with the battery. Tui was among those affected by the grounding of the Dreamliner.

It's last Boeing purchase - of the Dreamliner plane - ran into problems after Tui had to delay its first flights in May, blaming a "lack of delivery schedule" from the plane maker.

With the battery problem fixed, the company has now started delivery of the 787 Dreamliner wide-body and fuel efficient aircraft.

TUI Travel, which is the world's largest tour operator with a presence in 180 countries, will initially purchase 60 Boeing 737 MAX aircraft powered by LEAP-1B engines manufactured by CFM International.

It has the option to acquire up to a further 60 Boeing 737 MAX aircraft on the same terms as the committed 60 aircraft, and has been offered the right to purchase a further 30 Boeing 737 MAX aircraft on terms to be determined at the time of exercising this purchase right.

The significant discount to the list price of each aircraft has been worked out through various concessions, allowances and support from Boeing, the company stated.

The delivery period for the 60 committed aircraft will start in January 2018 and run until March 2023. Of these aircraft, 40 will be the Boeing 737 MAX-8 variant and 20 will be the Boeing 737 MAX-9 variant.

The 737 MAX-9 variant offers circa 10% more seat capacity than the 737 MAX-8.

The Group will also be required to purchase eight spare LEAP-1B engines from CFM to support the committed 60 aircraft at an aggregated list price of $104 million (68.7 million pounds).

TUI Travel has, however, secured substantial price concessions against this list price. >more...

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