SpiceJet Orders Boeing Jets Worth over $4 Billion - Sources
January 8, 2014 1:11 AM EST
Indian budget airline SpiceJetSJET.BO has agreed to buy around 40 Boeing(BA.N) 737 passenger jets worth over $4 billion at list prices as it seeks to modernize its fleet and climb out of the red, industry sources said on Tuesday.
A passenger outside the SpiceJet Airlines ticket counter at the domestic airport on the outskirts of Agartala
SpiceJet has placed a firm order for as many as 42 Boeing 737 MAX aircraft that offer fuel savings compared to its existing fleet of current-generation 737s, one source said.
Such an order would be worth $4.4 billion at list prices without adjusting for either inflation or price discounts.
The loss-making carrier, which is looking for new investors, has also negotiated options to buy as many as 42 more jets depending on its future growth, the industry sources said, speaking on condition of anonymity.
A spokeswoman for SpiceJet declined to comment.
Boeing said on Monday that unidentified airlines had placed orders for 164 similar aircraft as it reported its final tally for 2013.
Industry sources said at least part of the SpiceJet order is included in this list and is therefore already part of Boeing's backlog of unfilled orders.
A spokeswoman for Boeing declined to comment.
The deal comes as SpiceJet seeks new airplanes and new investments to revive its fortunes after posting a record quarterly loss in November, hit by high fuel prices and the weaker rupee.
India's fourth-biggest airline by domestic market share, controlled by billionaire Kalanithi Maran's Sun Group, is widely seen as a target for foreign investment after India loosened restrictions on investment by foreign airlines.
SpiceJet has reported interest from potential investors but has not named any. Industry experts say the airline may be hoping a fresh order book could help attract investors.
Details of the financing were not immediately available.
The deal is also seen as important for Boeing as it defends its position in one of the world's fastest-growing aviation markets. Indian media reports had said SpiceJet was looking towards Boeing's arch-rival Airbus (AIR.PA) for the new jets.
Most Popular Slideshows
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Australia's Low Birth Rate May Be Due to Low Confidence in Economy
- Fears Of Infection Spread Prompt Some US Hospitals To Refuse Ebola Patients
- Readers Slam a Book Showing That US Wealth And Power Rests on Slave Labour
- LG G Watch R To Be Available Globally Starting With Europe, North America And Asia Through Retail Sites And Play Store
- Young Teen Fighter Says ISIS Uses Drugs On Suicide Bombers To Get Them Perform The Act
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine
- Russia Slams US 'Double Standards' In The Fight Against ISIS