SpiceJet to buy 40 737 MAX aeroplanes

SpiceJet to buy 40 737 MAX aeroplanes

SpiceJet to buy 40 737 MAX aeroplanes
No-frills carrier SpiceJet on Monday announced that it has entered into a Memorandum of Understanding (MoU) with aircraft maker Boeing for 40 737 MAX aeroplanes that are valued at USD 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 aeroplanes of its current order to 737 MAX 10s, a statement said.

The airline will take delivery of its first 737 MAX in 2018.

On January 13 this year, SpiceJet had Friday announced one of the biggest aircraft order in the country buying 205 aircraft from Boeing for around USD 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 is buying 72 A320neo from Airbus for around USD 7.7 billion. In November 2015, Jet had announced the order for 75 737 MAX single-aisle aircraft from Boeing for USD 8,250 million while IndiGo in August same year firmed up a USD 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 maximize revenue on our dense routes while having a lower unit seat cost,” said SpiceJet Chairman and Managing Director Ajay Singh said.

"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.

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 onboard experience, while the aeroplane'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 aeroplanes by 2020 and looks to expand regionally with the new 737 MAX family of aeroplanes.