Boeing to build 205 airplanes for India's SpiceJet
Boeing is to make 205 airplanes for Indian budget airline SpiceJet, in a deal worth about $22bn.
Boeing Co.
$156.32
11:09 27/09/24
Dow Jones I.A.
42,313.00
04:30 15/10/20
The deal with the US planemaker includes 100 new 737 MAX 8s on top of SpiceJet's current order for 42 MAXs, plus 13 737 MAXs, as well as purchase rights for 50 additional airplanes.
Two years ago SpiceJet was rescued by its former owner Ajay Singh from bankruptcy.
Singh, chairman and managing director of SpiceJet, said: "The Boeing 737 class of aircraft has been the backbone of our fleet since SpiceJet began, with its high reliability, low operation economies and comfort. With the next generation of 737 and the 737 MAX we are sure that we can be competitive and grow profitably."
SpiceJet, placed its first order with Boeing 12 years ago for next-generation 737s and currently operates 32 of them in its fleet.
Ray Conner, vice chairman of Boeing, added: "The economics of the 737 MAXs will allow SpiceJet to profitably open new markets, expand connectively within India and beyond, and offer their customers a superior passenger experience."
The new airplane will use 20% lower fuel than the first next generation 737s and will have low operating costs for its class – 8% per seat less than its nearest competitor.
Shares in Boeing were up 0.45% in pre-market trade to 158.29 cents.