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Taking flight

SpiceJet on Wednesday said it is in talks with Boeing and Airbus Group to buy more than 100 single-aisle jets worth about $11 billion at list prices.

By: | Updated: July 30, 2015 5:31 AM

SpiceJet on Wednesday said it is in talks with Boeing and Airbus Group to buy more than 100 single-aisle jets worth about $11 billion at list prices. This could be its largest-ever plane order. The discussions are for Airbus A320neo and Boeing 737Max aircraft, SpiceJet chairman Ajay Singh told Bloomberg in an interview. It’s not just SpiceJet — with the domestic commercial aviation market set to become the third largest in the world by 2020, and the largest by 2032, according to a KPMG report, most domestic carriers are expected to double their fleet size to around 800 aircraft by 2020. An Airbus report pegs Indian domestic passenger traffic, which stood at 6.74 crore during 2014, to grow at almost 10% per year till 2032, reports Rhik Kundu in Mumbai.

Market leaders IndiGo, with a fleet size of 97 aircraft (Airbus 320), had during October 2014 placed a provisional order with Airbus to buy 250 A320neo (New Engine Option) aircraft, worth nearly $26 billion at list prices.

Although the term sheet of the provisional order has expired the airline remains in active discussions concerning the potential acquisition of a significant number of aircraft from the A320neo family.

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Air India, which has 102 aircraft in its fleet, will increase its fleet size to 152 aircraft by 2022. It has already taken delivery of 21 of 27 Boeing 787 (Dreamliner) aircraft and will take the remaining over the next few years. The airline will also lease as many as 50 aircraft and add to its existing fleet in the next five to six years as it looks to expand its operations, both domestic and international, in its quest to turn profitable by flying to more destinations and carrying more passengers.

Tags: SpiceJet
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