MIAMI — Indian low-cost carrier SpiceJet said on Friday it has reached an agreement to purchase up to 205 Boeing 737 MAX 8s, as part of its expansion plans in the world’s fastest growing aviation market.
Booked at the end of 2016, the announcement includes 100 new 737 MAX 8s, topping SpiceJet’s current order for 42 MAXs, and 13 additional 737 MAXs previously attributed to an unidentified customer on Boeing’s Orders & Deliveries books. The deal also includes purchase rights for 50 additional aircraft.
The deal is the largest deal for SpiceJet, it’s one of the largest in Indian aviation, and it’s the largest for Boeing in India to date.
“With the next generation of 737 and the 737 MAX we are sure that we can be competitive and grow profitably,” Ajay Singh, Chairman and Managing Director, SpiceJet, said in a statement. “We are now in a very good position to expand our network and operations, which includes both domestic and international routes and destinations.”
In IATA’s most recent 20-year air passenger forecast, India will displace the UK to be the third largest aviation market with 278 million passengers in 2026. Moreover, Boeing estimates India will need 1,850 new aircraft in the next two decades to cope with the growing air travel demand.
SpiceJet, all-Boeing operator, placed its first order with Boeing in 2005 for Next-Generation 737s, and currently operates 32 of the type in its fleet, serving 306 daily flights to 35 destinations in India and 6 overseas.