SpiceJet orders 40 Boeing 737 MAX planes for $4.74 b

To take first delivery in 2018

No-frills carrier SpiceJet on Monday announced that it has entered into an MoU with US aircraft giant Boeing for 40 737 MAX planes that is valued at $4.74 billion at current list prices.

The agreement is split evenly between 20 new orders for the 737 MAX 10, and conversions of 20 of the low-cost carrier’s 737 MAX 8 planes of its current order to 737 MAX 10s, a statement said.
The airline will take delivery of its first 737 MAX in 2018.

SpiceJet had on Friday announced one of the biggest aircraft orders in the country buying 205 aircraft from Boeing for around $22 billion or around Rs 1.5 lakh crore.

The Indian aviation market is booming with aircraft orders as in January another low-cost airline, GoAir, had announced that it was buying 72 A320neo planes from Airbus for around $7.7 billion. In November 2015, Jet had announced the order for 75 737 MAX single-aisle aircraft from Boeing for $8,250 million, while IndiGo in August of the same year firmed up a $25.7-billion order for 250 A320neo aircraft.

“As a Boeing 737 operator and current customer of the 737 MAX, we are proud to be a part of the launch of the 737 MAX 10, and to be the first airline in India to order the newest version of the 737, which will enable us to maximise revenues on our dense routes while having a lower unit seat cost,” said SpiceJet Chairman and Managing Director Ajay Singh.

“With the introduction of our 737 MAXs next year, we will be able to further expand our network, while keeping our costs low for our customers,” he added, on the sidelines of the Paris Air Show.

Boeing Commercial Airplanes Senior Vice President (Asia Pacific and India) Dinesh Keskar said, “The additional 20 737 MAX 8s and capacity provided by these 20 new 737 MAX 10s will allow SpiceJet to offer even more passengers their award-winning on-board experience, while the aircraft’s greater efficiency will keep SpiceJet profitable.”

SpiceJet operates a fleet of 35 next-generation 737s and 19 Bombardier Q400s. The carrier plans to grow its operational fleet to 100 planes by 2020, and expand regionally with the new 737 MAX family of aircraft.