NEW DELHI: Indian budget carrier SpiceJet said on Friday it had agreed to buy 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.
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.
“As part of this transaction they (Boeing) have not only been kind enough to give us good commercial terms but have worked hard to reduce the maintenance cost of the fleet going forward,” Ajay Singh, SpiceJet’s chairman, told a news conference in New Delhi.
Asian airlines are driving much of the growth in big planemaker order books, and analysts expect India’s market to grow substantially over the next decade as millions fly for the first time each year.
Indian airlines such as the biggest, InterGlobe Aviation’s IndiGo, as well as GoAir have collectively ordered hundreds of new planes from Airbus.
SpiceJet said it had signed a deal for buying up to 205 planes from Boeing — worth up to $22 billion at list prices — but the announcement includes 55 jets already announced in a 2014 deal and the possible follow-on order of 50 more.
A source said on Thursday that SpiceJet was set to announce an order for as many as 100 new planes.
It was not immediately clear if the order adds to Boeing’s previously announced tally. However, the company previously posted an order for 100 737 MAX jets from an unidentified customer that counted as part of its 2016 tally. — Reuters
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