SpiceJet orders 10 Boeing 737-800s worth $400 m

New Delhi: Low-cost carrier SpiceJet has placed orders for 10 more Boeing 737-800s for $400 million. The delivery is expected to start in 2009. At present, SpiceJet has a fleet of 11 aircraft and eight more will be inducted in the current financial year while another four would come in 2008-09. The company has already received an in-principle approval for the purchase of these 10 aircraft from the aircraft acquisition committee at a meeting held on March 23.
In January, SpiceJet had offloaded 25% stake to raise around $64.7 million. According to analysts, the company has a surplus of Rs 200 crore ($48) in its reserves. Since its launch, SpiceJet has garnered an 8% market share. In August last year, SpiceJet had announced that the airline converted its 10 options into an order for five next-Generation 737-800s and five 737-900ERs. SpiceJet had first announced the preliminary agreement for this order in February at the 2006 Asian Aerospace Air Show in Singapore. The order is valued at more than $700 million at list prices and deliveries are scheduled to begin in late 2007.
21/04/07 Atreyee Dev Roy/Financial Express

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Categories: SpiceJet Apr 2007