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SpiceJet is is in talks with Boeing and Airbus to acquire 80-120 planes in eight years.
The airline has a fleet of 34 aircraft — 18 Boeing 737s, two wet-leased Airbus A319s, and 14 Bombardier Q400 turboprops. It hopes to expand its Boeing 737 fleet to 26 by the end of the year. It has on order 42 Boeing 737 Max jets valued at $4.4 billion in list price that are due for delivery from 2018.
SpiceJet needs to expand its fleet expansion because leases of its current Boeing 737s will expire over the next four years.
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The airline plans to induct four or five Boeing 737 Max aircraft each year from 2018. By 2018, IndiGo which has 96 Airbus A320 aircraft now, expects its fleet to grow to 137 A320s.
“When we initiated the revival plan, the targets before us were to clear all statutory dues, stabilise operations and work on long-term funding and fleet plans. We are carrying out market and traffic projection studies and are working on a long-term business plan. We are discussing with Airbus and Boeing about aircraft requirement,” said Chief Financial Officer Kiran Koteshwar.
It made a Rs 72-crore profit in the June quarter, its highest ever first-quarter profit.
Source said SpiceJet had delayed pre-delivery payments to Boeing for the 42 aircraft order, but Koteshwar denied it. “Pre-delivery payments become due from 2016 and so there is no question of delay,” he pointed out.
Pre-delivery payments constitute 20-30 per cent of an aircraft’s purchase price and can be financed through borrowings, profits from sale and leaseback transactions, or other means.
Unlike rival budget airlines, SpiceJet flies a mixed fleet. Budget airlines stick to a single fleet to minimise engineering, maintenance and crew costs. “We will select (Airbus) only if it makes business sense,” Koteshwar said in a response to a query on diversification.
