Jet Airways to order 50 Boeing 737 Max planes: CAPA

Go Air, SpiceJet may receive a foreign strategic investor in 3-6 months

With equity investment and strategic alliance with Etihad in place Jet Airways is looking at a major fleet expansion.

Naresh Goyal-led airline will order 50 Boeing 737 Max planes, the Centre for Asia Pacific Aviation (CAPA) has said in its India outlook for 2013-14.

The 737 Max is Boeing's new generation plane which promises better fuel efficiency than competing products such Airbus A320neo.

In its report CAPA has said that Jet's order for 50 737Max planes could be announced at the Paris air show next month. It said Jet was also likely to order 8-10 wide body Boeing 777-300 planes. The report also said Jet is also looking to purchase 50 Airbus A320neos and that deal to could be announced next month.

 An airline source confirmed talks were on with Boeing for acquisition of the 737 Max but denied that airline was looking at acquiring additional Boeing 777s or airbus A320 neos at the moment. The 737 Max is expected to enter commercial service in 2017. Jet Airways did not respond to email query on the subject.

Currently the airline flies 58 such narrow body planes on domestic routes and to the Gulf sector and will induct 31 more 737s over the next three years. The fresh order will take care of fleet requirement beyond 2017, the source added.

CAPA said both Go Air and SpiceJet could receive investment from a foreign airline in next 3-6 months. The investment could lead to a change in SpiceJet's strategic plans, it said. "Confirmation of an order of 30-40 737 Max has been held up pending new investor coming on board, however continued delays may lead to carrier (Spice Jet) missing out on timely delivery slots. We expect that option for 15 Q400 regional aircraft will also be exercised after the strategic investor is confirmed,'' CAPA said.

According to media reports GoAir has appointed investment bank JP Morgan to scout an investor and is said to be in talks with Lufthansa, Emirates and Qatar Airways to sell 49% in the airline. GoAir termed the reports as market speculation while Lufthansa and Qatar Airways have denied interest in the airline.