SpiceJet and Boeing ink mega deal for 205 planes at Rs 1.5 Lakh Crore
The deal will enable SpiceJet to increase its current fleet strength of 55 aircrafts with additional 100 B737-8 MAX and also purchase rights for 50 B737-8 MAX and wide-body aircraft. Spicejet said that the cost of all 205 aircraft is estimated to be around $22 billion, (Rs 1.5 Lakh crore).
India’s leading airline, SpiceJet and Boeing have entered into a deal to buy about 205 airplanes on Friday in Gurgaon. The deal will enable SpiceJet to increase its current fleet strength of 55 aircraft with additional 100 B737-8 MAX and also purchase rights for 50 B737-8 MAX and wide-body aircraft. Spicejet said that the cost of all 205 aircraft is estimated to be around $22 billion (Rs 1.5 Lakh crore).
The airline officials added that, this is the biggest ever deal made by the airline. “This fleet acquisition provides SpiceJet the ability to capitalise on the robust demand forecast in the world’s fastest growing aviation market,” added officials.
The company has placed its first order with Boeing in 2005 for Next-Generation B737s and is currently operating 32 Next-Generation B737s in its fleet and 17 Bombardier Q400s.
Hailing the deal with Boeing as a significant step, Ajay Singh, Chairman and Managing Director, SpiceJet 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 rates; a record load factor of over 90% every month for 20 months in a row – a feat that has no parallel in aviation history.”
“We are now in a very good position to expand our network and operations which includes both domestic and international routes and destinations,” Singh added.
“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,” Mr Singh added.
Speaking to media later, Ray Conner, Vice Chairman, The Boeing Company said, “We are honored to build upon more than a decade of partnership with SpiceJet with their commitment of up to 205 airplanes. ” “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 addedd.
The B737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.
The new airplane consumes 20 percent lesser fuel than the first Next-Generation B737s, added Boeing officials.