Article Posted on : - Nov 07, 2010

Boeing Next-Generation 737-800. A Boeing photo

MUMBAI (PTI): Budget airline SpiceJet will buy 30 B737 planes from US aircraft manufacturer Boeing in a deal worth USD 2.7 billion, which will form part of USD 10 billion pacts being sealed during US President Barack Obama's visit.

"The order of 30 aircraft, the second of such order by SpiceJet, will enhance its penetration in India's low cost market," said Bhulo Kansagra, Director and one of the promoters of SpiceJet at the US India Business Council meet.

Boeing India President Dinesh Keskar said the deal, announced Saturday, was signed in late October after it received government approvals.

The deal is part of 20-odd pacts, worth USD about 10 billion, that are to be sealed during Obama's 3-day visit. The agreements are expected to create 50,000 jobs in the US.

The Gurgaon-based airline had said in July that it would order 30 Boeing 737-800 aircraft to expand its fleet and deliveries will begin by 2014. The airline is promoted by Sun TV chief Kalanithi Maran, who acquired a majority stake in the company in June.

Besides this deal, the SpiceJet Board has recently approved a plan to buy up to 30 small aircraft from Canada's Bombardier to enhance regional connectivity in the country.

The delivery of Bombardier jets is scheduled to commence in 2011.

The airline, with a fleet of 22 Boeing B737 aircraft, has a market share of 13 per cent. It operates 153 flights daily to 20 Indian cities and recently it had started its international operations with flights to Kathmandu and Colombo.