Govt clears $5-billion airplane purchases

The government has cleared the acquisition of 46 new aircraft worth over Rs 19,000 crore by three low-cost carriers: SpiceJet, IndiGo and Jet Lite. The new planes will arrive in a staggered delivery schedule beginning November. The acquisitions were cleared on August 30 at a meeting of a civil aviation ministry empowered committee.
US manufacturer Boeing bagged the larger part of the clearances — 32 planes — while 14 went to European rival Airbus.
The permission to acquire new aircraft comes around six months after the government gave in-principle clearance to IndiGo to buy 150 new aircraft. The cost was estimated at around Rs 65,000 crore.
Gurgaon-based SpiceJet received approval for 30 Boeing 737-800s at a cost of $2.7 billion (Rs 12,660 crore). Delivery is to start from 2014. SpiceJet operates a fleet of 21 aircraft and will induct seven more in the current calendar year. It plans to operate 50 aircraft by 2014.
IndiGo, which is the country’s largest low-cost carrier by market share, received approval for 14 A-320s for 2011-12. The Gurgaon-based carrier, which operates a fleet of 27 aircraft and has a market share of 16.9 per cent, is adding seven new planes this financial year. IndiGo ordered 100 Airbus 320 aircraft in 2005 for delivery by 2015-16.
The third airline JetLite, a wholly-owned subsidiary of Jet Airways, has been granted permission to buy two Boeing 737-800s in November. JetLite operates a fleet of 23 aircraft and has a marketshare of 7.5 per cent.
04/09/10 Mihir Mishra/Business Standard/Sify

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Categories: Indigo Airlines Sep 2010, Jetlite Sep 2010, SpiceJet Sep 2010