Jan 12, 2017: SpiceJet is set to seal an order for at least 90 new 737 jets from Boeing, as the low-cost carrier targets an expansion to tap into India's burgeoning air travel market, according to media report.
An agreement with SpiceJet, which has a current fleet of 40 planes, would be a much-needed boost for Boeing in India, as its rival Airbus has won record-sized orders with IndiGo as well as a recent deal with GoAir.
SpiceJet has been in talks with Boeing and Airbus since 2015, and it is expected to have secured a discount from the roughly $10 billion cost of the 90 737 MAX jets based on list prices. Under chairman Ajay Singh, SpiceJet has been rebuilding its business since almost collapsing after running out of cash in late 2014. The airline has grown its market share and returned to profitability but it remains far smaller than market leader IndiGo.
Despite soaring passenger numbers, Indian carriers have struggled to achieve consistent profitability because of fierce competition, regular price wars and high operating costs.