SPICEJET TO BUY 20 BOEING PLANES; UPGRADES 20 ORDERS
And upgrades 20 existing orders, taking total deal value to $4.7 billion
India's low-cost carrier SpiceJet will buy 20 Boeing 737 MAX 10's. Also, it upgraded 20 of its existing 737 MAX 8 orders to MAX 10, taking the total deal value to $4.7 billion, even as it looks to carry more passengers between Indian metros where airports remain congested.
Boeing has launched the 737 MAX 10 as a bigger version of the 737 MAX 8 and 9 with increased seating up to 230 in a single-class configuration. The airline currently operates 35 Boeing 737-800’s and 737900 Next generation planes which have seating capacities of 212 and 189, respectively.
If the order is finalised, SpiceJet will become a launch customer for the newest version of Boeing aircraft.
SpiceJet plans to launch low-cost long-haul service between Delhi and Birmingham (England) in the coming winter schedule.
Indian airlines looking to take advantage of growing traffic are increasingly deploying bigger planes to large metros. SpiceJet's low-cost rival IndiGo has decided to upgrade 20 of its 430 orders for A320 neo to A321 neo. The A320 neo accommodates as many as 189 passengers, while the A321 neo carries as many as 240.
"The newest version of the 737 will enable us to maximise revenue on our dense routes while having a lower unit-seat cost," said Ajay Singh, chairman and managing director, SpiceJet. "With the introduction of our 737 MAX's next year, we will be able to further expand our network, while keeping our costs low for our customers." Full-service carriers Jet Airways and Air India have deployed wide-body aircraft like Boeing 777's, Boeing Dreamliner 787's, and Airbus A330's to cope with higher traffic and slot constraints at some airports that limit the number of flights. Jet Airways now connects all four major Indian airports with the A330 planes which have 254 seats each, including 18 businessclass seats. Major Indian airports are on the verge of saturation and are unable to provide new slots to airlines. While Mumbai airport is not issuing any new slots, at Delhi airport, airlines are not getting slots during peak hours.