Spicejet signs a $12 billion-deal for above 100 aircrafts

India Infoline News Service | Mumbai | October 18, 2016 10:53 IST

Indian budget carrier, SpiceJet has signed the dotted lines of the deal for more than 100 aircrafts, valued around US $12 billion (over Rs 80,000 crore) by November.

Indian budget carrier, SpiceJet has signed the dotted lines of the deal for more than 100 aircrafts, valued around US $12 billion (over Rs 80,000 crore) by November, as per reports.

The no-frills carrier is reportedly in talks with global aircraft makers, Boeing and Airbus for quite some time now. Both the aircraft manufacturers are keen on being a part of this growth plan, stated Ajay Singh, Chairman, Spicejet, reports stated.

The low-cost carrier would purchase five aircrafts from Boeing and lease three aircraft from Bombardier this financial year, so as to increase daily flights and enter into newer international destinations, as reported by Business Standard.

"We have significant financial resources to fund the purchase of the aircrafts as we have been profitable for the past few quarters and also have significant ability to use the (credit) limits from banks," said Singh as mentioned in the report.

SpiceJet is in plans to induct over 100 narrow-body planes in its fleet to tap growing domestic demand. The airline’s domestic demand has undergone a 20 per cent spike in the last several months, Singh had said in earlier reports.However, he did not share any details on the order size, saying it is part of the negotiation.

In addition to Boeing and Airbus order, the airline is also looking at increasing the number of Bombardier Q400s as well to 17 from the current 14, he said as per reports.

Currently, Spicejet operates 298 daily flights to 41 destinations, including 35 domestic and six international ones. 
 

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