Friday, January 13, 2017

Indian Budget Airline to Buy 200 Boeing Jets

Indian budget airline SpiceJet will buy up to 205 Boeing planes worth $22 billion – one of the biggest deals in India’s booming airline industry, the two companies announced Friday.

Boeing had reported an order for one hundred 737 MAX jets in 2016 from an unnamed buyer, confirmed Friday to be India’s SpiceJet. The budget airline said the deal was for “up to” 205 planes, but 50 of those are from an earlier deal and 50 more are an add-on option to the initial 100.

SpiceJet is India’s fourth largest airline by number of passengers carried and holds a 12.8 percent share in the Indian airline market.

Indigo is the country’s market leader, which also holds the record for the biggest deal, having bought 250 planes worth $26.5 billion from Airbus in 2015.

India’s booming economy and growing middle class have contributed to a 20 percent increase in Indian airline passengers in 2016, making it the world’s fastest-growing air travel market.

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