Low-cost carrier, SpiceJet has signed an interim on Monday to buy 40 of Boeing’s newly launched 737 MAX 10 jets. By signing this provision, the company has become an inaugural customer of an aircraft designed to blunt strong sales of rival planemaker Airbus’ A321neo.
This agreement cost them ₹30,298 crores at current list prices which include a new order for 20 planes and a conversion of 20 of SpiceJet’s 737 MAX 8 aircraft from an existing order.
SpiceJet’s chairman, Ajay Singh while addressing a conference said: “As happens in many countries growing at the pace at which India is growing, many airports are running out of capacity and for those airports, this is a perfect aircraft”. He also claimed that 190-230 seat aircraft is enough for India’s growth.
India, is a key market for planemakers, with analysts expecting Indian passenger numbers to more than triple over the next 20 years as people are becoming more wealthy enough to fly for the first time. SpiceJet is the fourth-largest Indian airline behind IndiGo, Jet Airways, and state-run Air India.
The budget carrier plans to grow its operational fleet to 200 airplanes by the end of the decade and expand regionally with the new 737 MAX family of airplanes. SpiceJet will take delivery of its first 737 MAX in 2018.