Budget airline SpiceJet has signed a deal with Boeing Co to buy 42 737 MAX jets in a deal worth $4.4 billion at list prices, the company said on Wednesday, sending its shares up more than 7 per cent.
The order, which first reported in January, could help the loss-making Indian carrier, India’s fourth-biggest airline by market share, as it seeks new investors.
Delivery of the new jets will begin in 2018, S.L. Narayanan, chief financial officer at SpiceJet’s parent, Sun Group, told at an Indian air show in southern city of Hyderabad.
Payments for the order will be closer to the delivery date, he said, declining to give further details on funding plans.
Narayanan said some payments for the latest order would be adjusted against the 12 Boeing 737 NG planes from an ongoing order SpiceJet will be swapping for 737 MAX.
SpiceJet, controlled by billionaire Kalanithi Maran’s Sun Group, is seen as a target for investors after India relaxed restrictions on investment by foreign airlines. It has reported interest from potential investors but has not named any.
The long-awaited fleet renewal and the possible stake sale have become intertwined, industry sources have said, with the airline seen as potentially more attractive once it gets the new jets.