Boeing wins $6bn TUI Travel order
London, May 31, 2013
British travel firm TUI Travel agreed to buy 60 mid-range Boeing jets with an option for 90 more, moving to make its fleet more fuel-efficient and delivering the US planemaker a big contract win over European rival Airbus.
The world's largest tour operator, which owns six European airlines including Britain's Thomson Airways, said on Friday the initial order of Boeing 737 MAX planes was secured at a "significant discount" to the list price of $6.09 billion.
The planes, to be powered by CFM LEAP-1B engines, are scheduled for delivery between January 2018 and March 2023, TUI Travel said
It said such a large deal would represent a class 1 transaction, meaning it would require shareholder approval.
"TUI Travel have 59 leases on planes expiring over the next three years so the fact they are looking to buy these planes shows the strength of the company," said Oriel Securities analyst Jeffrey Harwood, who added that cutting its fuel bill was a big motivation for the group.
Several European carriers have seen profits battered by high fuel costs - which now account for around half of airlines' operating expenditure - in recent years.
Boeing has said the 737 MAX, which competes with Airbus' A320neo, will burn 13 percent less fuel than current 737 models.
Reuters reported earlier this year that TUI Travel was close to sealing a deal for 60 narrow-body airliners.
Boeing is also competing with Airbus to supply British low-cost airline easyJet with new planes.
EasyJet is edging towards a firm order for at least 100 A320neo or 737 MAX planes jets worth around $10 billion, with as many again in options, sources close to the deal said, adding that the European planemaker was the favourite. - Reuters
More INTERNATIONAL NEWS Stories
- Investors monitoring Pimco after internal strife
- N Korea tanker ‘leaves Libya rebel port carrying oil’
- Malaysia plane incident not terror related: Interpol
- Crimea closes air space to commercial flights
- Missing Malaysian plane last seen At Malacca Strait
- Stolen passport holder on missing plane is Iranian
- China deploys 10 satellites to search for Malaysia jet
- Libya says halts tanker outside port; rebels deny it
- Libya orders military force to 'liberate' ports
- Big bananas: Chiquita, Fyffes merge
- Radar sweeps, dozens of aircraft, but no sign of plane
- N Korea tanker loads oil at Libya rebel port
- Gold drops as US growth optimism weighs
- Merkel raps Putin; Russia tightens grip on Crimea
- World 'at sea' over missing Malaysian jetliner
- Passports requiring probe were on Malaysia flight
- 40 killed in Yemen as Houthi fighters near capital
- Vietnam finds object in sea; search on
- $5bn poll spend to boost India economy
- Libya authorises use of force against Korean tanker
- Ukraine PM says he will go to US to discuss crisis
- Syrian journalist killed covering fighting
- Malaysian jet may have turned back before vanishing
- No sign of missing plane; Malaysia probes false passports
- Two Europeans not on board 'missing' Malaysian jet
- China draws red line on North Korea
- Saudi sentences three to death for 2003 bombing
- First bitcoin machine opens in UK
- US sanctions will boomerang, warns Russia
- China plans $50bn bank to fund projects