Tui Travel Plc, a travel company with its headquarters in Crawley, UK, has placed an order for new aircraft worth £4 billion.
The order is for 60 Boeing 737 MAX aircraft, and the company also has options on 90 more of the narrow-body type. The aircraft are due to be delivered between January 2018 and March 2023.
The new aircraft score over the company’s existing fleet on two of the key aviation requirements going forward, fuel efficiency and noise reduction. The technology used in the engines of the 737 MAX is claimed to provide a 13 percent improvement in fuel efficiency, and offer noise reduction in the region of 40 percent over current aircraft norms. From a competitive standpoint, Tui also expects that the aircraft will provide a lower per seat cost.
In a statement the company said, ‘In order to maintain cost competitiveness and support Tui Travel’s aim to minimise the environmental impact of its activities, the existing narrow-body aircraft will need to be replaced in the next decade.
‘The proposed transaction will ensure that the group has sufficient aircraft to fulfil its long-term plans and that the expected accrued value justifies the cost of the purchase.’
Peter Long, Tui Travel’s chief executive, said, ‘A major part of Tui Travel’s strategy is to provide our customers with unique holiday experiences they can only get from us. This multi billion-pound investment in the B737 MAX – representing the future generation of more fuel-efficient aircraft for our short and medium-haul programmes – will be a further driver in delivering this.
‘It comes as the first of our Boeing 787s touches down in the UK to commence replacement of our long-haul fleet with best-in-class aircraft. We are leading the way in redefining mainstream holidays, and putting our customers at the heart of everything we do is integral to our continued growth.
‘I can confidently say that 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.’