SME Times News Bureau | 21 Jun, 2017
Budget passenger carrier SpiceJet on Tuesday said that it has entered
into an agreement with Bombardier Commercial Aircraft for purchase of up
to 50 Q400 turboprop planes.
The airline has signed a Letter of
Intent (LOI) with Bombardier at the International Paris Air Show for up
to 50 Q400 turboprop airliners. The LOI includes 25 Q400 turboprops and
purchase rights on an additional 25 aircraft.
Based on the Q400
turboprop list price, an order could be valued at up to $1.7B billion.
This would be the single biggest order for the Q400.
"I am
delighted to announce this new order for 50 Q400 planes. SpiceJet
operates India's largest regional fleet and is the only organized
operator in this space. This order will help us further increase
connectivity to smaller towns and cities and help realise Prime Minister
Narendra Modi's vision of ensuring that every Indian can fly," said
SpiceJet Chairman and Managing Director Ajay Singh.
"Our passengers will be able to fly to more cities and help expand India's already booming aviation market."
Bombardier
Commercial Aircraft President Fred Cromer said: "When finalised, the
repeat order will increase the Q400 aircraft fleet in the fast-growing
market in the Asia-Pacific region and will launch the high-density
86-passenger model of the Q400 aircraft in India.
"This is also
compelling evidence that the demand for turboprop aircraft is healthy in
short-to medium-haul markets that can't economically support jets that
are more expensive to operate."
SpiceJet operates a fleet of 35
Next-Generation 737s and 20 Bombardier Q400s. Since 2010, it has taken
delivery of 15 Q400 aircraft. The airline currently operates 20 Q400
aircraft in a 78-seat configuration to domestic and international
destinations. When concluded, this fleet expansion will provide SpiceJet
the ability to grow profitably and leverage the robust demand forecast
in the world's fastest growing regional aviation market.
Bombardier's
Q Series turboprops and CRJ Series regional jets have made significant
advances in the Asia-Pacific region where approximately 190 aircraft -
including more than 165 Q Series turboprops -- are in service with or on
order by over 25 customers and operators. Bombardier has recorded firm
orders for a total of 585 Q400 aircraft.
