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TUI plans on buying 60 Boeing airplanes in a huge deal

Boeing 737 of the tour operator TUITUI Travel Plc stated it plans to buy 60 Boeing 737 MAX aircraft and will consider the purchase of another 90 planes as the company is looking for high fuel efficiency. The travel company owns six European airlines said the order of that proportion should be discussed with shareholders till an approval is reached. The delivery process would take around five years in the period of 2018-2023.

Various airlines have chosen to purchase exactly those planes due to their fuel efficient feature which becomes more and more crucial for flying at affordable cost. The current cost of fuel represents around 40% of all airline costs.

The company said “Following the delivery of the aircraft, TUI Travel will continue to enjoy the benefits of a modern, fuel-efficient and cost-effective aircraft fleet”. That would lower per-seat costs which would put the company ahead of competitors.

The TUI purchase would follow the earlier agreement of Singapore Airlines to buy Airbus and Boeing aircraft valued $17 billion. The travel company is supposed to get a discount for the large amount of the deal. The company stated “TUI Travel has secured a significant discount to the list price of each aircraft through various concessions, allowances and support from Boeing”.

Bieing Co. closed yesterday at a gain of 1.46% per share while TUI Travel Plc recorded a loss of 1.24% per share. However, both companies are on a nice run since the beginning of the year which seems to continue considering their expansion policies.

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