SpiceJet announced it will buy up to 205 Boeing planes worth $22 billion (Rs 1.5 lakh crore), making it one of the biggest aircraft orders by an Indian airline.
The order is a firm one for 155 Boeing 737-8 Max and 50 purchase rights for wide body long haul planes like Dreamliner and the B-737s, said SpiceJet chairman Ajay Singh, who brought the airline back from the verge of closure two years ago.
Singh said, “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 and a record load factor of over 90% every month for 20 months in a row.”
The agreement with SpiceJet came when Boeing needed a business-boost in India, as its rival Airbus had won record-sized orders with IndiGo, India’s biggest budget airline, as well as a recent deal with GoAir.
India is among the most attractive for plane-makers seeking a new wave of growth and also, is the world’s fastest growing aviation market. Due to low prices and rising disposable incomes, Indian passenger numbers are increasing by more than 20 percent annually.
Despite soaring passenger numbers, Indian carriers have struggled to achieve steady profitability because of aggressive competition, regular price wars and high operating costs.
SpiceJet to buy up to 205 Boeing aircraft worth $22 billion
