By ET Bureau | Jan 13, 2017, 01.13 AM IST
MUMBAI/NEW DELHI: Budget air carrier SpiceJet BSE -0.47 % plans to announce a purchase of about 100 Boeing 737-8 Max aircraft tomorrow, a senior executive said, in what would be one of the biggest orders for Boeing from India.
India is the world's fastest growing aviation market and among the most attractive for plane makers seeking a new wave of growth. Indian passenger numbers are increasing by more than 20% annually thanks to low prices and rising disposable income.
At list prices, the total deal value would be worth about $11 bn (Rs 75,900 crore). However, airlines are known to wrest hefty discounts on big plane orders.
The 737 Max is the fourth generation of the 737 family with the primary change being the use of the larger and more efficient CFM International Leap-1B engines, split-tip winglets and some modifications to the airframe. As of December 31, 2016, Boeing has more than 3,500 orders for the 737 Max series.
SpiceJet had previously ordered 42 of the planes while Jet Airways has ordered 75.
An agreement with the Gurgaon-based low fare carrier, which has a fleet of 40 planes, would provide a boost to Boeing in India as its rival Airbus has orders of about 430 aircraft from IndiGo and 144 from GoAir.
SpiceJet, which had shut operations for a day in December 2014, has turned around under current chairman Ajay Singh. It has increased market share from 9% in the beginning of 2016 to over 13% by end of it.
