Conversion nets Boeing $700m

1 min read

Boeing and New Delhi-based SpiceJet have announced that the airline converted its 10 options into an order for five Next-Generation 737-800s and five 737-900ERs.

SpiceJet first announced the preliminary agreement for this order in February at the 2006 Asian Aerospace Air Show in Singapore. The order is valued at more than $700m at list prices and deliveries are scheduled to begin in late 2007.

The options exercised yesterday are part of an order SpiceJet originally placed in February 2005. That order included 10 737-800s, the first of which Boeing delivered to the airline in February 2006.

"These aircraft will enable us to develop additional routes in India and bring our low fares to even more customers," said SpiceJet Board Director Bhulo Kansagra.

The 10 737s will be fitted with blended winglets, which Boeing says will improve fuel efficiency, increase range and reduce takeoff noise.

SpiceJet, one of India's newest start-up private carriers, uses a single-class seating configuration on its short- and medium-haul flights within India. SpiceJet first began service in May 2005 with three leased Boeing 737-800s.