(Image courtesy of Boeing.)
Boeing and SpiceJet recently announced an order for 205 new airplanes, including 100 more 73 MAX 8s. This is the largest order in the history of SpiceJet. The contract also includes the low-cost carrier’s current order of 42 MAXs, 13 new 737 MAXs and the purchase rights of 50 additional airplanes.
Ajay Singh, chairman and managing director of SpiceJet said the company is anticipating the order will increase its competitive advantage. "The Boeing 737 class of aircraft has been the backbone of our fleet since SpiceJet began, with its high reliability, low operation economies and comfort," Singh said.
Ray Conner, vice chairman of The Boeing Company, agreed that the partnership would help SpiceJet to increase its reach in the airline industry. "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,” Conner said.
Boeing Takes the Lead Over Airbus
The order, coupled with one from Qatar Airlines valued at USD $18.6 billion a few months ago, puts Boeing at an advantage over its competitor Airbus.
In fact, both companies predict growth into the trillions of dollars, with Boeing leading the way at $5.9 trillion while Airbus is predicting $5.2 trillion. The estimates are based on projections of 39,620 new orders for Boeing airplanes and 33,000 new orders for Airbus.
Both companies are relying heavily on APAC-based airlines as the primary source of new orders over the next 20 years.
SpiceJet and Boeing
Boeing has been working with SpiceJet for over a decade.
SpiceJet, which only operates Boeing jets, initially ordered some Next-Generation 737s from Boeing in 2005. These NG 737s are equipped with CFM International LEAP-1B engines as well as Boeing’s Advanced Technology winglets.
The airline currently has 32 of these airplanes in its fleet.
The new model 737 MAX uses 20 percent less fuel that the NG 737s and costs about eight per cent less to operate than competing models, according to Boeing.
For more information, visit the websites for Boeing and SpiceJet.