Spicejet signs $22-bn deal to buy 205 Boeing aircraft

Tribune News Service

New Delhi, January 13

Budget carrier SpiceJet today said it has signed a deal with aircraft manufacturer Boeing for the purchase of up to 205 aircraft. The deal is valued at $22 billion (Rs 150,000 crore) at list prices, which is the largest in the history of the airline.

This will enhance SpiceJet’s existing order of 55 aircraft with additional 100 firm B737-8 MAX and 50 purchase rights for B737-8 MAX and wide-body aircraft.

It will also end an era of turnaround and marks the beginning of a growth story for the next decade. This fleet acquisition provides SpiceJet the ability to capitalise on the robust demand forecast in the world’s fastest growing aviation market.

SpiceJet placed its first order with Boeing in 2005 for Next-Generation B737s and currently operates 32 Next-Generation B737s in its fleet and 17 Bombardier Q400s.

“Our turnaround story has been one which has very few parallels in the world today and we are proud of it. SpiceJet has achieved seven consecutive quarters of profit, highest on-time performance and lowest cancellation rates and a record load factor of over 90% every month for 20 months in a row — a feat that has no parallel in aviation history,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

"We are now in a very good position to expand our network and operations, which include both domestic and international routes and destinations," said Singh.

"The Boeing 737 class of aircraft has been the backbone of our fleet since SpiceJet began, with its high reliability, low-operation economies and comfort. With the next generation of B737 and the B737 MAX, we are sure that we can be competitive and grow profitably," he said.