Tui Travel seals deal to buy 60 Boeing 737 jets

TOUR operator Tui Travel has agreed a multi-billion pound deal to buy 60 Boeing 737 jets, with the option to buy 90 more.

The owner of travel agent Thomson said it has secured a “significant discount to the list price” of £4bn for the first tranche of 737 Max jets, which Boeing claims use 13 per cent less fuel and generate 40 per cent less noise than rival aircraft.

Deliveries are due to start in January 2018 and run until March 2023, the purchase subject to approval from shareholders.

Tui owns six European airlines with 141 aircraft between them and yesterday received the first of 13 Boeing 787 Dreamliner jets from a previous order.

The firm said: “Being able to offer our customers the most advanced, comfortable aircraft, whether they are travelling with us to short or long-haul destinations, while reducing our environmental impact, will only strengthen our position.”

Oriel Securities analyst Jeffrey Harwood said Tui has 59 plane leases expiring over the next three years, “so the fact they are looking to buy these planes shows the strength of the company”.