SpiceJet to place order for 90-100 new planes

After long drawn discussions, SpiceJet is all set to announce an order for 90-100 new aircraft estimated to be worth at least Rs 55,000 crore as the no-frills carrier looks to expand its fleet.

The airline, which was on the verge of going kaput two years ago, is likely to place the order with US aircraft maker Boeing.

An official said the deal for around 90-100 new planes is expected to be announced by SpiceJet Chairman and Managing Director Ajay Singh tomorrow.

A SpiceJet spokesperson declined to comment.

Currently, the airline has 47 aircraft in its fleet comprising 29 Boeing 737s and 18 Bombardier Q400s.

The airline is expected to place order for Boeing 737 family and the 2016 list price for the starting model in this category is little over USD 90 million per aircraft, the official said.

On this basis, the anticipated order value would be at least Rs 55,000 crore at current exchange rates.

In 2014, SpiceJet -- which has remained in the black for seven straight quarters -- had agreed to buy around 42 B 737 MAX planes from Boeing under the previous leadership. The Marans sold their entire 58.46 per cent stake in the airline to Ajay Singh in January 2015.

Last week, an airline spokesperson said it was expecting to complete negotiations and place orders for new aircraft this fiscal ending March.

"Negotiations are going on for quite some time. We expect to complete these negotiations and place the order this financial year," the spokesperson had said.

For the 2016 July-September quarter, the airline had posted its highest-ever quarterly profit of Rs 59 crore. In the year-ago period, the same stood at Rs 29 crore.