Boeing (BA.N) is set to seal an order with India’s SpiceJet (SPJT.BO) for the delivery of at least 90 new 737 jets from Boeing (BA.N), two sources said on Thursday,January 12.
The announcement for the 737 MAX aircraft – which includes at least 42 of the narrowbody jets SpiceJet had previously agreed to buy from Boeing in 2014 – is expected as early as Friday when SpiceJet’s chairman holds a press event in New Delhi, the sources, who were familiar with the matter, said.
An agreement with SpiceJet, which has a current fleet of 40 planes, would be a much-needed boost for Boeing in India, as its rival Airbus (AIR.PA) has won record-sized orders with IndiGo, India’s biggest budget airline, as well as a recent deal with GoAir.
SpiceJet and Boeing did not immediately respond to requests for comment.
India is the world’s fastest growing aviation market, showing double-digit growth in annual passenger numbers thanks to low prices and rising disposable incomes.
This move is tune with the low-cost carrier’s expansion plan to tap into India’s booming air travel market, Reuters reports.
SpiceJet has been in talks with Boeing and Airbus since 2015, and it is expected to have secured a discount from the roughly $10 billion cost of the 90 737 MAX jets based on list prices. Airlines typically get discounts from list prices when placing large orders.
