Hyderabad: Ending months long speculation, low-cost carrier SpiceJet on Wednesday formally announced its decision to buy 42 737 MAX jets from the US aircraft maker Boeing for $4.4 billion or nearly Rs 27,000 crore.
The deal, which was initially expected to be signed at the Singapore air show, has become key highlight of the India Aviation — jointly organised by civil aviation ministry and FICCI.
On Tuesday, this newspaper had reported the possibility of the deal being announced at India Aviation 2014.
The first flight is scheduled in 2016 with deliveries to customers beginning in 2017. Spicejet expects to receive five aircraft a year. The new aircraft increa-ses Spicejet efficiency as the Indian aviation sector braces up for fierce competition with the entry of new airlines.
Mr Sanjeev Kapoor, the Chief Operation Officer of Spicejet, however, feels that competition is good for business and more than one major player can exist in India. “Spicejet would be one of those major players in the market,” he said, adding that it expects smaller cities to be the next growth engine in India.
