Indian budget airline SpiceJet is poised to order at least 92 Boeing 737 jetliners as the carrier plots rapid expansion in the world’s fastest growing aerospace market.
The deal, which would more than double SpiceJet’s 40-plane fleet, may be closed within weeks Bloomberg reported, citing people with direct knowledge of the decision. The order could be worth about $10.1 billion, the publication reported. The deal includes at least 50 new units of the Boeing 737 Max as well as renegotiated terms for 42 units of the model that SpiceJet had ordered in 2014, the report said. SpiceJet will likely pay less than the listed price of the aircraft because it is ordering them in bulk. The company currently has 49 aircraft in its fleet.
The order would be a record for SpiceJet, which was forced to shut down operations for a day two years ago after it ran out of money, prompting co-founder Ajay Singh to bail out the low-cost carrier. The airline may boost the total if final talks yield bigger discounts and favorable maintenance contracts, one of the people said. “We expect to complete these negotiations and place the order this financial year,” the airline said in an emailed statement. A Boeing spokesman declined to comment.