SpiceJet to buy 205 Boeing jets

Low cost aviation major SpiceJet has inked a mega deal with Boeing for purchase of up to 205 jets worth USD 22 billion. This is arguably the biggest deal in aviation history. 

SpiceJet enhanced its existing order of 55 aircrafts with additional 100 firm B737-8 MAX and 50 purchase rights for B737-8 MAX and wide-body aircrafts. With this, the total order of 205 aircraft is valued at Rs 1,50,000 crore.

This order, the biggest in SpiceJet’s history, ends the era of turnaround and marks the beginning of a growth story for the next decade. This fleet acquisition provides SpiceJet the ability to capitalise on the robust demand forecast in the world’s fastest growing aviation market.

“Our turnaround story has been one which has very few parallels in the world today and we are proud of it. SpiceJet has achieved seven consecutive quarters of profit, highest on-time performance and lowest cancellation rates; a record load factor of over 90 per cent every month for 20 months in a row – a feat that has no parallel in aviation history,” said Ajay Singh, Chairman and MD, SpiceJet.

The new airplanes will save on fuel cost up to 20 per cent and thereby bring the overall operating cost down by eight per cent.

Reacting to the news, shares of SpiceJet surged close to 4 per cent intra-day to trade at Rs 66.25 on the BSE.