Tour operator TUI Travel Plc (TT.L) announced the proposed purchase of 60 narrow-body Boeing 737 MAX aircraft from Boeing Co. (BA) as part of its fleet renewal strategy and move to Modern Mainstream.
TUI Travel said it has secured a significant discount to the list price of each aircraft through various concessions, allowances and support from Boeing. At current list prices, the value of 60 Boeing 737 MAX aircraft that TUI Travel is committed to purchase is $6.09 billion or 4 billion pounds. The delivery period for the 60 committed aircraft will start in January 2018 and run until March 2023.
The forty of these aircraft will be the Boeing 737 MAX-8 variant and 20 of these aircraft will be the Boeing 737 MAX-9 variant. The 737 MAX-9 variant offers circa 10% more seat capacity than the 737 MAX-8.
Boeing 737 MAX aircraft will be powered by LEAP-1B engines manufactured by CFM International.
The company noted that it has the option to acquire up to a further 60 Boeing 737 MAX aircraft on the same terms as the committed 60 aircraft. The company 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 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 or 68.7 million pounds. However, TUI Travel said it has secured substantial price concessions against this list price.
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