Moneycontrol
Jan 15, 2017 01:05 PM IST | Source: Moneycontrol.com

SpiceJet strikes Rs 1.5 lakh cr deal with Boeing for 205 planes

In one of the biggest deals in the Indian aviation sector, SpiceJet will purchase up to 205 new aircraft from Boeing with the order valued at Rs 1,50,000 crore.

 
 
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In one of the biggest deals in the Indian aviation sector, SpiceJet will purchase up to 205 new aircraft from Boeing with the order valued at Rs 1,50,000 crore.


With an earlier order for 55 planes and additional 100 new 737-8 MAX aircraft, the no-frills carrier now has firmed up an order for a total of 155 planes, besides purchase rights for 50 B737-8 MAX and wide body aircraft.


Announcing the deal, SpiceJet Chairman and Managing Director Ajay Singh said the total order of 205 aircraft is valued at Rs 1,50,000 crore (USD 22 billion).

"The delivery of the planes will start in 2018 and last through 2024", Singh told Moneycontrol, adding that there was enough flexibility on the frequency and quantum of each delivery.


Singh ruled out any equity issue or raising any loan to fund the purchase. The airline would rather rely on the tried and tested model of sale and leaseback and Exim Bank guaranteed the transaction, he added.

Currently, the budget carrier has 32 next generation B737s and 17 Bombardier Q400s.

The SpiceJet-Boeing 150-plane deal would rank as the second-largest order in the history of Indian aviation, just behind InterGlobe Aviation Ltd's 2011 order for 180 Airbus A320Neo planes.

— With PTI inputs

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