India’s Gurgaon-based budget airline SpiceJet has signed an agreement with Boeing to purchase 100 new Boeing 737 MAX 8s, 42 MAXs, 13 additional 737 MAXs as well as purchase rights for 50 additional planes.
India (as well as other countries in Asia), is an important market for aviation with analysts expecting passenger numbers to more than triple over the next 20 years as millions more people become wealthy enough to fly for the first time, reports Channel NewsAsia.
The new aircraft will increase the range of SpiceJet’s flights by up to one hour, opening up many more destinations, including international ones, Ajay Singh, SpiceJet’s chairman, told reporters. Most Indian carriers have returned to profitability in recent years, due to lower fuel costs, but challenges remain in translating the surging demand into sustainable profits because of the competitive market and high running costs.
