SpiceJet reportedly places $4 billion Boeing order
Jan. 10, 2014, Bangalore, India - Indian low-cost carrier SpiceJet has reportedly agreed to purchase about 40 Boeing 737 aircraft in a deal valued at more than $4 billion at list prices.
The proposed deal comprises a firm order for 737 MAX jets, which provide improved saving on fuel costs when compared with the carrier's existing fleet of old Boeing 737 aircraft, Reuters reported citing industry resources.
The move is expected to help the loss-making airline, as the company seeks new investors.
Sources further revealed that the budget airline has negotiated options to double the order by buying a further 42 jets.
At the end of 2013, Boeing announced that various unidentified airlines had placed orders for 164 medium-distance jets.
According to industry sources, a part of these orders has come from SpiceJet.
The deal comes at the time when the airline is seeking new aircraft and investments after reporting a record quarterly loss in November last year, due to high fuel costs and weak rupee.
Low-cost airline flydubai has also recently placed an order for 75 Boeing 737 MAX 8 and 11 Next-Generation 737-800 aircraft, worth $8.8 billion at list prices. The order also provides flydubai with purchase rights for 25 more 737 MAX aircraft.
Boeing's 737 MAX has been designed to provide operators with a 14% fuel-use improvement, compared with other fuel-efficient single-aisle aircraft in the market.