SpiceJet orders bigger planes to fly congested routes
SpiceJet said on Monday it has signed an agreement to buy a stretched version of Boeing 737 Max planes called Max 10 that can fly more passengers and help overcome slot constraints at some local airports.
At the ongoing Paris Air Show, the airline said it has signed a memorandum of understanding for 40 737 MAX airplanes which are valued at approximately $4.74 billion at current list prices. These include 20 new orders for the 737 MAX 10 and conversions of 20 of the low-cost carrier’s 737 MAX 8 airplanes of its current order to 737 MAX 10s.
Airlines typically pay less than 3% to book these planes and closer to date of delivery sell these and lease them back for their use.
“We are proud to be a part of the launch of the 737 MAX 10 and to be the first airline in India to order the newest version of the 737, which will enable us to maximize revenue on our dense routes while having a lower unit seat cost,” Ajay Singh, CMD, SpiceJet.
Boeing 737 Max 10 is about fiveand-a-half feet longer than its current 737 Max 9 and can seat between 180 and 230 passengers compared with Max 9’s 178 seats. The plane is likely to be in service by 2020. It will compete with Airbus’s similar plane which can seat 240 passengers.