SAN FRANCISCO (Diya TV) — American aircraft manufacturer Boeing won a $22 billion deal from budget carrier SpiceJet Ltd., marking the company’s largest-ever order from an Indian airline, and strengthening its hold in a market dominated by European rival Airbus.
The order includes 100 of Boeing’s signature 737 Max aircraft, it was renegotiated originally from 55, SpiceJet said in a statement Friday. As part of the deal, the airline also has the option to purchase another 50 aircraft from Boeing, including the 777 and the 787 Dreamliner wide-bodies.
The commitment, which was included in Boeing’s 2016 order tally, comes as the Chicago-based company races to catch its aforementioned rival in narrow-body aircraft sales, the largest source of profit for both companies. The deal for the 737s, which competes with Airbus’s A320neo, also helps Boeing widen its grip in the fast-growing Asian market.
Rapidly expanding Indian carriers will need 1,850 new planes valued at $265 billion in 20 years, according to a Boeing forecast. Single-aisle planes will represent the bulk of these deliveries, the forecast said.
The Asia-Pacific region, which is surpassing North America as the world’s largest aircraft market, will need more than 15,000 new planes valued at $2.3 trillion in the next 20 years. That represents 38 percent of the global requirement, according to Boeing.
SpiceJet, which is based in Gurgaon near New Delhi, and AirIndia Express are the only budget carriers to use Boeing aircraft in the country.The airline placed firm orders for 100 737 Max 8 aircraft, with a cumulative list price of $11 billion, before the discounts that are customary for large customers.
Deliveries will begin in July 2018 and continue through 2024. The carrier and Boeing also discussed a proposed stretch of the largest Max, Singh told reporters. The so-called 10X, Boeing’s response to Airbus’s fast-selling A321neo, would be available in 2020 and seat as many as 230 travelers.
Information from Bloomberg contributed to this report.
