• SpiceJet places order for 205 Boeing aircraft worth Rs 1,50,000 cr

    Spicejet has placed an order for 205 Boeing aircraft valued at $22 billion or Rs. 1,50,000 crore at list price.

    With the earlier order for 55 planes and additional 100 new 737-8 MAX aircraft, the airline has now firmed up order for 155 planes, besides purchase rights for 50 B737-8 MAX and wide body aircraft.

    The new aircraft will be delivered between 2018 and 2024.

    “Largest Boeing order in India,” Ajay Singh, promoter of Spicejet, said.

    He said that the airline could look at launching low-cost long haul service if they decide to acquire widebody. No firm decision as yet.

    Currently, the budget carrier has 32 next generation B737s and 17 Bombardier Q400s.

    “We are honoured to build upon more than a decade of partnership with SpiceJet with their commitment of up to 205 airplanes,” Boeing Company Vice Chairman Ray Conner said.

    Ajay Singh said the induction of the new aircraft, which burn 20 per cent less fuel, would help SpiceJet reduce costs and enhance its ability to compete.

    “This is a composite transaction for purchase of up to 205 aircraft valued at $22 billion,” Singh said, adding that the focus is on growing the airline in a responsible and profitable manner.

    After being on the verge of going belly up two years ago, the airline has been in the black for the past seven straight quarters.

    When asked about financing of the deal and its impact on debt to equity ratio, Singh said there would be no “equity dilution” and the balance sheet would be healthy.

    In the 2016 July-September quarter, the airline had posted its highest-ever quarterly profit of Rs. 59 crore. In the year-ago period, the same stood at Rs. 29 crore. Jon Niese Authentic Jersey

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