Bombardier set to make inroad in India with SpiceJet order for 30 Q400s

Montreal: Bombardier's efforts to tap into the Indian transportation market is bearing fruit after discount carrier SpiceJet said it plans to spend about US$900 million to order 30 Q400 NextGen turboprops.
The airline informed the Bangkok Stock Exchange that its board approved an initial order for 15 planes with an option for 15 more on Tuesday, with deliveries beginning in the second quarter.
The airline's new CEO told reporters in New Delhi that it plans to more than double its fleet in about three years. It currently flies 22 Boeing 737s to 18 India cities.
"We believe that the enormous potential in the Indian domestic market can be further tapped by enhancing regional connectivity,” Neil Mills said.
Founded five years ago, it is India's fifth largest carrier and second-largest low-fare airline with about 12.8 per cent market share. It launched service to Nepal and Sri Lanka in October and services 22 destinations in India and the neighbouring countries.
SpiceJet placed a US$2.3-billion order in July for 30 Boeing planes that will begin to be delivered in 2014.
Bombardier spokesman John Arnone said no agreement has been signed, but acknowledged that the company was in talks with the SpiceJet.
"We look forward to finalizing a purchase agreement for Q400 aircraft," he said in an interview.
Bombardier has CRJ planes in operation in the world's largest democracy, but this would mark its first delivery of new Q400 turboprops.
"As a market, we're very bullish on the potential for our aircraft in India. It is a market that has the ideal conditions for any one of our three family of aircraft — Q400, CRJ as well as CSeries," Arnone said.
Bombardier forecasts that India will increase its fleet of between 20 and 149 seat aircraft from 120 to 650 aircraft in the next 20 years.
02/11/10 Ross Marowits/The Canadian Press/Winnipeg Free Press

To Read the News in full at Source, Click the Headline

Categories: Foreign Nov 2010, New Nov 2010, spicejet Nov 2010