SpiceJet to purchase more Boeing planes

SpiceJet to purchase more Boeing planes

Indian airline market is expanding at a faster pace than ever before. Low cost airline SpiceJet has just announced that they are planning to acquire another 10 aircrafts from the Boeing Company and have placed orders for them. These plans would be Boeing 737-800 and the first of these 10 would be joining the company’s fleet by February 2006.

SpiceJet CEO Siddhanta Sharma said in a statement after announcing the airline’s network extension to South India from November 14: “The rest will join in a phased manner by December 2007.” He also said that their company has also tied up with three US companies who would provide them with four new 737-800s from April-May next year.

The list price of the plane is around USD 16 million for each unit. However, most airline companies manage to snatch out a bargain from the aircraft manufacturer. SpiceJet started its operations in May 2003, with a fleet of three aircraft. They added two more crafts next year and with this, the carrier operated 28 flights a day to 35 destinations carrying nearly 4500 passengers a day.

SpiceJet CEO Siddhanta Sharma also said: “We presently have 35 pilots, 10 over the requirement, including check pilots. We have invested about $40 million till now and allotted fresh equity to a US based financial institution to invest $12.5 million. We are also going to have foreign currency convertible bonds for $70-80 million.”

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