Post signing a deal for buying 40 Boeing 737 MAX planes, the SpiceJet airlines has recently announced that it has signed a pact to purchase around 50 Q400 turboprop aircraft worth US$ 1.7 billion from Bombardier. The letter of intent signed is for the purchase of 25 Q400 turboprops along with the rights to buy extra 25 aircrafts. These planes will be equipped with 86-seater according to the sources.
Details of the Sealed Deal
Previously, the pact was signed at the ongoing Paris Air Show. The pact signed will be worth more than Rs 10,900 crore at the current exchange rate. R N Choubey, the civil aviation secretary said that the pact signed with SpiceJet will help in taking forward the government’s objective to provide air connectivity to the passengers.
Fred Cromer, the president of Bombardier Commercial Aircraft stated that after the deal is finalised the order will witness an increase for the Q400 aircraft fleet in the fastest growing market in the Asia Pacific region, and will launch the high-density model that will accommodate 86 passengers in the Q400 aircraft in India. SpiceJet has taken a delivery of 15 Q400 aircrafts since 2010, and controls a fleet of nearly 35 737s and 20 Q400s. The airline controls nearly 20 Q400 aircraft that with 78 seat configured for international and domestic destinations. SpiceJet has further signed a pact with Boeing Co for nearly 40 737 MAX aircrafts. According to the pact signed, these aircrafts will be worth US$4.7 billion.
Purchase Encouraged by Government
Aircraft carriers in India have recently ordered hundreds of aircrafts and airbuses, which include turboprop models as a carrier for the middle class fliers as Prime Minister Narendra Modi has pledged to invest in the aircraft that fly to remote routes and to the airports that help in improving connectivity with the remote areas. Ajay Singh, the CMD of SpiceJet stated that increasing purchase by the airlines will help us improve the connectivity with smaller cities and town. This has motivated airlines in India to make more purchases that will help further contribute towards the motive of the government. Indian airlines including the market leader Indigo, which is operated by the InterGlobe Aviation Ltd. has ordered around 430 Airbuses SE A320 neo jets. Apart from this, Indigo has signed a pact to purchase nearly 100 aircrafts along with 50 turboprop planes. According to the sources, post signing a deal for purchase, SpiceJet closed at 2.05%, and up at Rs 126.60 on June 19, 2017. Sources reveal that the stocks had doubled this year