SpiceJet renegotiating Boeing deal

New Delhi: Faced with huge losses owing to a slowdown in passenger traffic and higher fuel and operating costs, the Delhi-based low cost air carrier SpiceJet on Saturday said it was re-negotiating its deal with Boeing.
"We are re-negotiating our deal with Boeing now. We prefer sub-leasing aircraft either through wet sub-lease or dry sub-lease," said Samyukta Sridharan, a senior executive officer of SpiceJet. Wet sub-lease comes with pilot and crew while in case of dry sub-lease, it is only the aircraft.
This move to step back from earlier decision to buy aircraft from Boeing comes despite the US billionaire investor W.L. Ross infused Rs.34.5 billion ($821.4 million) in the airline July 16. SpiceJet is understood to have delayed the purchase of seven of the 30 aircraft it ordered in 2005.
The airline is currently operating 14 planes, delivered between 2005 and 2007. SpiceJet's load factor last month was 78 percent against 90 percent in June last year.
Earlier this week, Boeing senior vice-president Dinesh Keskar here ruled out any Indian carrier deferring on deliveries of new aircraft. SpiceJet had ordered all its aircraft from the Boeing.
26/07/08 Indo Asian News Service/NDTV.com

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Categories: SpiceJet Jul 2008