SpiceJet orders 40 Boeing jets worth $4 b

Thursday, 9 January 2014 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Indian budget airline SpiceJet has agreed to buy about 40 Boeing 737 jets worth over $ 4 billion at list prices, industry sources said, a move that could help the loss-making carrier as it seeks new investors.

The deal includes a firm order for as many as 42 Boeing 737 MAX aircraft that offer fuel savings compared to SpiceJet’s existing fleet of current-generation Boeing 737s, the sources said. Such an order would be worth $ 4.4 billion at list prices without adjusting for either inflation or price discounts. The Indian carrier has also negotiated options to double the order by taking up to 42 further jets depending on its ability to grow, the industry sources said, speaking on condition of anonymity on Tuesday. A spokeswoman for SpiceJet declined to comment. On Monday, Boeing said unidentified airlines had placed orders at the end of 2013 for 164 such medium-haul aircraft. Industry sources said at least part of the SpiceJet order is included among those latest unidentified orders and is therefore already part of Boeing’s backlog of new business. A spokeswoman for Boeing declined to comment. The deal comes as India’s fourth-biggest airline by domestic market share seeks new planes and new investments to revive its fortunes after posting a record quarterly loss in November, hit by costly fuel and a weak rupee. The airline, controlled by billionaire Kalanithi Maran’s Sun Group, is seen as a target for foreign investors after India loosened restrictions on investment by foreign airlines. SpiceJet has reported interest from potential investors but has not named any. It has been linked in the past with Qatar Airways and Dubai’s Emirates but both have denied any interest in a stake. Last month, SpiceJet announced a three-year inter-line partnership with Singapore’s Tiger Airways, raising the prospect of closer co-operation between those airlines.