Indian low-cost carrier SpiceJet has reportedly agreed to purchase about 40 Boeing 737 aircraft in a deal valued at more than $4bn at list prices.
The proposed deal comprises a firm order for 737 MAX jets, which provide improved saving on fuel costs when compared with the carrier’s existing fleet of old Boeing 737 aircraft, Reuters reported citing industry resources.
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The move is expected to help the loss-making airline, as the company seeks new investors.
Sources further revealed that the budget airline has negotiated options to double the order by buying a further 42 jets.
At the end of 2013, Boeing announced that various unidentified airlines had placed orders for 164 medium-distance jets.
According to industry sources, a part of these orders has come from SpiceJet.
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By GlobalDataThe deal comes at the time when the airline is seeking new aircraft and investments after reporting a record quarterly loss in November last year, due to high fuel costs and weak rupee.
Low-cost airline flydubai has also recently placed an order for 75 Boeing 737 MAX 8 and 11 Next-Generation 737-800 aircraft, worth $8.8bn at list prices. The order also provides flydubai with purchase rights for 25 more 737 MAX aircraft.
Boeing’s 737 MAX has been designed to provide operators with a 14% fuel-use improvement, compared with other fuel-efficient single-aisle aircraft in the market.
Image: The Boeing 737 MAX jets provide improved saving on fuel costs. Photo: courtesy of Boeing.
