Indian airline SpiceJet has made a deal to buy up to $22bn worth of planes from Boeing

 
Courtney Goldsmith
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SpiceJet first placed an order with Boeing in 2005
SpiceJet first placed an order with Boeing in 2005 (Source: Getty)

SpiceJet today announced it would buy 100 new 737 Max aircraft from Boeing with an option for 50 more in a deal worth up to $22bn (£18bn) in total.

The deal for a total of up to 205 planes also includes an agreement for 55 jets that was previously announced in 2014.

SpiceJet is an all-Boeing operator, and this is the largest purchase in the Indian budget carrier's history.

Earlier this month, Boeing said it hit its delivery target of new planes in 2016, but new orders for the aircraft manufacturer failed to match up.

Ajay Singh, chairman and managing director of SpiceJet said, "With the next generation of 737 and the 737 Max we are sure that we can be competitive and grow profitably."

The new jets use 20 per cent less fuel than their predecessors and have the lowest operating cost of their class at eight per cent less per seat than the nearest competitor, Boeing said in a statement.

"We are honoured to build upon more than a decade of partnership with SpiceJet with their commitment of up to 205 airplanes," said Ray Conner, vice chairman of Boeing.

Read more: Boeing just said it will cut even more jobs in 2017

He added: "The economics of the 737 Maxs will allow SpiceJet to profitably open new markets, expand connectively within India and beyond and offer their customers a superior passenger experience."

Asian airlines are driving much of the growth of major plane makers. Analysts expect India's market to grow substantially over the next decade as millions fly for the first time each year, Reuters reported.

Indian airlines have collectively ordered hundreds of new planes from Airbus, which earlier this week posted record deliveries.

It was not immediately clear if the order adds to Boeing's tally of 748 deliveries announced 6 January.

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