SpiceJet plans huge aircraft order
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SpiceJet is planning to place an order for at least 150 aircraft, its chairman has revealed.
The Economic Times reported Ajay Singh as telling reporters in Dubai that he plans to complete the purchase before the end of the current fiscal year. It will be the largest order in SpiceJet’s history.
“We are in the process of placing a large aircraft order. The airline will order in excess of 150 planes. We hope to do that in this financial year,” Singh, SpiceJet’s chairman and managing director, was quoted saying.
India’s current financial year ends on 31 March 2016.
SpiceJet has recovered rapidly following financial problems in 2014 that caused it to ground multiple aircraft and cancel flights. It now operates 291 daily flights to 40 destinations, including six international hubs, using its fleet of 25 Boeing 737s, 14 Bombardier Q400s and two Airbus A320 aircraft.
It is not clear what aircraft type SpiceJet will select, but it is likely to be either the Boeing 737 MAX or Airbus A320neo. An order for 150 of these jets would be valued at approximately US$16 billion at current list prices, although SpiceJet will expect to receive a significant discount.
The Economic Times reported Singh as saying that SpiceJet has unused credit lines that could be used to pay for the new aircraft.
Indian airlines have a history of placing large orders; in 2011 IndiGo placed an order for 180 Airbus A320 aircraft, and followed that up in 2014 with an order for a further 250 A320s.
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