SpiceJet to buy 50 Bombardier Q400 aircraft for $ 1.7 billion1 min read . Updated: 29 Sep 2017, 09:44 PM IST
Spicejet's agreement with Bombardier includes 25 Q400 turboprops and purchase rights for an additional 25 aircraft
New Delhi: SpiceJet Ltd has signed an agreement to buy 50 Bombardier Q400 turboprop planes to expand operations on regional routes linking small cities and towns.
The purchase agreement includes 25 Q400 turboprops and purchase rights for an additional 25 aircraft. Based on list prices, the order is valued at up to $ 1.7 billion though actual prices are heavily discounted. This purchase agreement confirms the Paris Airshow announcement the airline had made earlier this year.
These planes are likely to have 90 seats, the airline said.
“SpiceJet operates India’s largest regional fleet and has always been a firm believer in the growth story of India’s smaller towns and cities. We have worked hard over the years to put these smaller towns on the country’s aviation map and will strive do the same in the times to come." SpiceJet chairman Ajay Singh said in a statement.
The airline already participates in the government’s Udan regional connectivity scheme and plans to add more flights to smaller towns in the winter with leased Q40p planes.
“We are very proud to firm up this agreement with SpiceJet as it is another demonstration of the Q400’s unique versatility. This repeat order will not only increase the Q400 aircraft fleet in the fast-growing regional market in India and in the Asia-Pacific region but will also launch the high-density 90-passenger model," said Fred Cromer, president, Bombardier Commercial Aircraft. “This order confirms the airlines’ increased capacity needs on regional routes with high passenger demand and demonstrates the increased profitability potential that this unique turboprop configuration has to offer."
Since 2010, SpiceJet has taken delivery of 15 Q400 aircraft. The airline currently operates 20 Q400 aircraft in a 78-seat configuration to domestic and international destinations.
SpiceJet has also placed an order for up to 225 narrow and wide-body jets with Boeing Co.