SpiceJet gives 40-plane order for $4.7bn

NEW DELHI: Low-cost carrier (LCC)

SpiceJet

on Monday signed an MoU with

Boeing

for 40

B737 MAX aircraft

. Valued at about $4.7 billion at current list prices, the agreement is split between 20 new orders for the 737 MAX 10 and conversions of 20 of the

LCC

's 737 MAX 8 airplanes to 737 MAX 10s.

SpiceJet

CMD Ajay Singh

said, "As a Boeing 737 operator and current customer of the 737 MAX, we are proud to be part of the launch of the 737 MAX 10 and to be the first airline in India to order the newest version of the 737, which will enable us to maximise revenue on our dense routes, while having a lower unit seat cost. With the introduction of 737 MAXs next year, we will be able to further expand our network, while keeping costs low for customers."

SpiceJet had signed a deal to buy up to 205 Boeing planes worth $22 billion this January .The LCC had then enhanced its then existing order of 55 single aisle B737-8 by 100 to 155. An additional 50 planes -a mix of wide-bodied and B737s -have been placed as an optional order, taking the total to 205.

SpiceJet currently has a fleet of 35 B737s and 19 Bombardier Q400s. The carrier plans to grow its operational fleet to 100 by 2020.