BUSINESS

SpiceJet plans to buy 50 turboprops for $1.7 billion

Fleet expansion:It earlier signed a pact for buying 40 Boeing 737 MAX planesGettyimages/istock

Fleet expansion:It earlier signed a pact for buying 40 Boeing 737 MAX planesGettyimages/istock  

Signs LoI with Bombardier for 86-seater Q400 aircraft

No-frills airline SpiceJet on Tuesday announced plans to purchase 50 Q400 turboprop aircraft worth $1.7 billion (more than Rs. 10,900 crore) from Bombardier, a day after signing a pact for buying 40 Boeing 737 MAX planes.

SpiceJet, which has drawn up ambitious expansion plans, has signed a letter of intent with Bombardier Commercial Aircraft to buy up to 50 Q400 turboprop aircraft.

The letter of intent is for 25 Q400 turboprops and purchase rights for an additional 25 aircraft. These are 86-seater planes.

“Based on the Q400 turboprop list price, the order could be valued at up to USD 1.7 billion. This would be the single biggest order for the Q400,” SpiceJet said in a statement. At the current exchange rate, the order will be worth over Rs. 10,900 crore.

“I am delighted to announce this new order for 50 Q400 planes... This order will help us further increase connectivity to smaller towns and cities,” SpiceJet CMD Ajay Singh said. The initial pact was signed at the ongoing Paris Air Show.

Civil Aviation Secretary R.N. Choubey said SpiceJet’s order will help take forward the government’s vision to provide air connectivity to the common man.

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