SpiceJet signs outsourcing deal with Boeing

New Delhi: Gurgaon-based budget carrier SpiceJet has hit upon an idea pioneered by Sunil Bharti Mittal in the telecom sector. The company is all set to replicate Bharti's model of outsourcing several operations hoping to see similar miracles for the beleaguered airline.
SpiceJet, which spends between 5-10 per cent of its total operating cost on spares and servicing, has signed an outsourcing deal with Boeing.
As per the details of the agreement, the deal spares will now be purchased and inventory will be managed by Boeing. This will bring down SpiceJet's manpower and material costs substantially.
Airlines are doing everything in their power to keep their costs down and even though Spicejet's is trying to do the same, Boeing is very keen to finalise the deal for very different reasons.
Boeing's eagerness to help ease SpiceJet's burden may have been prompted by the airline's move to look at its rival Airbus for its fleet order.
05/05/09 Ashutosh Sinha and Arijit Banerjee/NDTV

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Categories: Foreign May 2009, SpiceJet May 2009