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Boeing receives order of 100 planes from SpiceJet

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Boeing receives order of 100 planes from SpiceJet

Boeing receives order of 100 planes from SpiceJet

On Friday, Indian budget airline SpiceJet announced that it has agreed to acquire 100 new MAX 737 aircraft from Boeing, with an option for 50 more, as part of its expansion plans in the world’s fastest growing aviation market. Asia, especially India, is a key market for planemakers, with analysts expecting Indian passenger numbers to more than triple over the next 20 years as millions more people become wealthy enough to fly for the first time.

SpiceJet said altogether it has signed a deal to acquire up to 205 planes from Boeing, worth up to $22 billion at list prices, but that total includes 55 jets already announced in a 2014 deal and the possible follow-on order of 50 more.

Combined, local airlines like IndiGo, as well as GoAir, have already ordered hundreds of new planes from Airbus.

Boeing expressed pride in being a partner with SpiceJet and the news of the agreement in two separate posts today on Twitter:

The deal is a welcome boost for Boeing in India, where SpiceJet is the US company’s only major customer among the budget carriers now dominating the country’s air industry.

“This is an extremely competitive market,” the chairman of SpiceJet Ajay Singh said in news conference in New Delhi. “What this aircraft order does is enhance our ability to be competitive in the future as it helps us reduce costs,” he added.

SpiceJet was briefly forced to ground its fleet in late 2014 when it ran out of cash, and is the fourth-largest Indian airline behind InterGlobe Aviation’s IndiGo. But it appears that the future is looking brighter for SpiceJet. The company proudly shared photos on Facebook to let followers know about its big order with Boeing:

Boeing estimates India will need 1,850 new aircraft worth $265 billion by 2036 to meet demand for air travel.

Dinesh Keskar, senior vice president of Asia Pacific & India Sales at Boeing, told reporters that SpiceJet, which has a current fleet of more than 40 planes, will take delivery of the first of its new jets in the third quarter of 2018.

The carrier is expected to have secured a handsome discount from Boeing, as is common with large orders.

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