Budget carrier SpiceJet today signed an initial pact with the US aircraft maker Boeing Co for 40 737 MAX planes.
A Memorandum Understanding (MoU), valued at USD 4.7 billion at current list prices, was signed at the Paris Air Show, which commenced today.
The agreement is split evenly between 20 new orders for the 737 MAX 10 and conversions of 20 737 MAX 8 airplanes from the airline's existing order to 737 MAX 10s, according to a release.
"As a Boeing 737 operator and current customer of the 737 MAX, we are proud to be a part of the launch of the 737 MAX 10 and to be the first airline in India to order the newest version of the 737, which will enable us to maximise revenue on our dense routes while having a lower unit seat cost," SpiceJet Chairman and managing Director Ajay Singh said in a release.
"With the introduction of our 737 MAXs next year, we will be able to further expand our network, while keeping our costs low for our customers," Singh said.
The Gurgaon-based no-frills airline had earlier this year announced that it will purchase up to 205 new aircraft (including 55 from the 2014 order) from Boeing with the order valued at USD 22 billion.
SpiceJet currently has a fleet of 55 planes, comprising 35 Boeing B 737s 20 Bombardier Q400s.
"SpiceJet continues to be an aviation leader and strong Boeing partner, and we are honoured to have them join 737 MAX 10 launch group," B...