SpiceJet to buy 50 Bombardiers for $1.7 billion

This is the airline's second biggest order this year and comes 8 months after its purchase of 155 Boeing planes

SpiceJet has firmed up its order of upto 50 Bombardier Q400 planes to give a push to its regional connectivity planes.  
On Friday, the airline signed a purchase contract for the planes. It will also be the launch customer for extra-capacity 90 seat Q400 planes. 

The purchase agreement includes 25 Q400 planes and rights for another 25 planes. Based on the list price, the deal is valued at $ 1.7 billion. SpiceJet signed a memorandum of understanding (MoU) with Bombardier at the Paris Air Show in July. This is the largest order ever for Q400 aircraft from any customer.

Deliveries will start next year and the airline will install 18 planes over the next three years. It did not disclose the financing model for its latest purchase but its previous acquisition of 15 Q400 planes, was funded through loans from Export Development Canada.

This is the airline's second biggest order this year and comes eight months after its purchase of 155 Boeing planes which include firm order and options. 

“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 times to come," SpiceJet chairman Ajay Singh said in a statement. 

SpiceJet now operates 55 planes including 20 Q400 planes which seat 78 passengers.  "We have been witnessing growth in the number of passengers per departure in the turboprop market, especially in India. Today, Bombardier offers the largest turboprop aircraft available on the market and SpiceJet will be the first airline to take advantage of the profitable and efficient operations that the 90-passenger high-density Q400 will offer them,” said François Cognard,  Bombardier's vice president, sales, South-Asia and Australasia. 

SpiceJet has been awarded six proposals and 11 routes under the first phase of the India government's UDAN Regional Connectivity Scheme. Out of the six finalised proposals, four will cater to unserved markets of Adampur, Kandla, Puducherry and Jaisalmer whereas two will be for underserved markets of Porbandar and Kanpur. Flight operations have already commenced on Mumbai-Porbandar-Mumbai and Mumbai-Kandla-Mumbai routes from July and on Hyderabad-Puducherry from August.

SpiceJet now operates 55 planes including 20 Q400 planes which seat 78 passengers