SpiceJet places $2.7 billion orders with Boeing

New Delhi: SpiceJet is eyeing a mega fleet expansion to take part in the aviation growth story in the coming years. The Gurgaon-based airline, which was recently acquired by Kalanithi Maran’s Sun Group, has placed a $2.7 billion order with Boeing for delivery of 30 new 737-800 aircraft beginning 2014. The deliveries should be completed in five years.
According to Boeing’s own estimates, the Indian aviation market should grow by 60% between now and 2014 to 80 million passengers, and SpiceJet is looking for a large share of this growth story.
Ajay Singh, a director on the SpiceJet board, says low-cost airlines today account for almost 70% of the domestic market .
Singh said that, between now and 2014, the carrier’s fleet will more than double to 50 aircraft (from 21 now). All the aircraft at present are on lease from Boeing and the airline is looking to lease at least 15 more over the next two years.
27/07/10 Sindhu Bhattacharya/Daily News & Analysis

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Categories: SpiceJet Jul 2010