Boeing and SpiceJet close to signing $10.1B deal for 737s
Bloomberg, Nisarg Vyas
SpiceJet, India’s second largest LCC, is close to signing a deal with Boeing, ordering 92 of the American plane makers 737 narrow-body jets, as reported by Bloomberg. The deal, worth around $10.1 billion, would significantly expand the carrier’s 49-strong fleet, making it easier to compete with the country’s largest airline IndiGo, which had ordered 200 jets from Airbus in 2015.
According to unidentified sources quoted by Bloomberg, the deal comprises firm deals for as many as 50 737 MAX planes and a renegotiation of 42 Boeing 737 MAX 8, ordered in 2014.
The major order would be a personal record for SpiceJet that had to ground its flights for a day in 2015 after the company depleted its funds.
At the same time, the deal would help Boeing strengthen its position in India, a market heavily dominated by rival Airbus A320 narrow-body jets.
SpiceJet, controlling 13% of the Indian market (compared to 42% by IndiGo) currently operates a 49-strong fleet comprising 32 Boeing 737 jets and 17 Bombardier Q400 turboprop planes.