SpiceJet inks mega deal with Boeing for up to 205 jets

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Biggest order in airline’s history


Gurgaon, 13 January, 2017: SpiceJet, India’s favourite airline and Boeing announced a deal for the purchase of up to 205 airplanes here today.

SpiceJet enhanced its existing order of 55 aircraft with additional 100 firm B737-8 MAX and 50 purchase rights for B737-8 MAX and wide-body aircraft. With this, the total order of 205 aircraft is valued at $22 billion (Rs. 150,000 crores) at list prices.

This order, the biggest in SpiceJet’s history, ends the era of turnaround and marks the beginning of a growth story for the next decade. This fleet acquisition provides SpiceJet the ability to capitalise on the robust demand forecast in the world’s fastest growing aviation market.

SpiceJet placed its first order with Boeing in 2005 for Next-Generation B737s and currently operates 32 Next-Generation B737s in its fleet and 17 Bombardier Q400s.

“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,” said Ajay Singh, Chairman and Managing Director, SpiceJet.

“We are now in a very good position to expand our network and operations which includes both domestic and international routes and destinations,” Mr Singh said.

“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.

“We are honored to build upon more than a decade of partnership with SpiceJet with their commitment of up to 205 airplanes,” said Ray Conner, Vice Chairman, The Boeing Company. “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.”

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 will deliver 20 percent lower fuel use than the first Next-Generation B737s and the lowest operating costs in its class – 8 percent per seat less than its nearest competitor.