SpiceJet inks deal with Boeing for up to 205 jets

SpiceJet announced a deal for the purchase of up to 205 airplanes on Friday here.

SpiceJet enhanced its existing order of 55 aircraft with additional 100 firm B737-8 MAX and 50 purchase rights for B737-8 MAX and wide-body aircraft. With this, the total order of 205 aircraft is valued at $22 billion (Rs 1,50,000 crore) at list price.

SpiceJet had 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. Also, a record load factor of over 90% every month for 20 months in a row," Ajay Singh, Chairman and Managing Director, SpiceJet, said.

 

"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," Singh added.

"We are honoured to build upon more than a decade of partnership with SpiceJet with their commitment of up to 205 airplanes," said Ray Conner, Vice Chairman, The Boeing Company.

"The economics of the 737 MAXs will allow SpiceJet to profitably open new markets, expand connectively within India and beyond, and offer their customers a superior passenger experience," he added.

The B737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver efficiency, reliability and passenger comfort in the single-aisle market.