Exclusive: SpiceJet orders 40 Boeing jets worth $4 billion: sources

Tue Jan 7, 2014 1:17pm EST
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By Praveen Menon and Tim Hepher

DUBAI/PARIS (Reuters) - Indian budget airline SpiceJet has agreed to buy about 40 Boeing 737 jets worth over $4 billion at list prices, industry sources said, a move that could help the loss-making carrier as it seeks new investors.

The deal includes a firm order for as many as 42 Boeing 737 MAX aircraft that offer fuel savings compared to SpiceJet's existing fleet of current-generation Boeing 737s, the sources said.

Such an order would be worth $4.4 billion at list prices without adjusting for either inflation or price discounts.

The Indian carrier has also negotiated options to double the order by taking up to 42 further jets depending on its ability to grow, the industry sources said, speaking on condition of anonymity on Tuesday.

A spokeswoman for SpiceJet declined to comment.

On Monday, Boeing said unidentified airlines had placed orders at the end of 2013 for 164 such medium-haul aircraft.

Industry sources said at least part of the SpiceJet order is included among those latest unidentified orders and is therefore already part of Boeing's backlog of new business.

A spokeswoman for Boeing declined to comment.   Continued...

A SpiceJet Boeing 737-800 aircraft taxis on the tarmac after landing at Chhatrapati Shivaji international airport in Mumbai November 26, 2012. REUTERS/Danish Siddiqui