Spicejet flies high after inking mega jet purchase deal with Boeing

Spicejet rose 3.21% to Rs 65.95 at 14:05 IST on BSE after the company said that it inked a mega deal with Boeing for up to 205 jets, the biggest order in company's history.

The announcement was made during market hours today, 13 January 2017.

Meanwhile, the BSE Sensex was down 78.15 points, or 0.29%, to 27,169.01.

On the BSE, 50.35 lakh shares were traded in the counter so far, compared with an average volume of 43.34 lakh shares in the past one quarter. The stock had hit a high of Rs 66.55 and a low of Rs 64.55 so far during the day. The stock had hit a 52-week high of Rs 95.30 on 28 January 2016. The stock had hit a 52-week low of Rs 54.50 on 9 November 2016.

The stock had outperformed the market over the past 30 days till 12 January 2017, rising 7.3% compared with 2.76% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 10.84% as against Sensex's 2.97% decline.

The mid-cap low-cost airliner has an equity capital of Rs 599.45 crore. Face value per share is Rs 10.

SpiceJet and Boeing announced a deal for the purchase of up to 205 airplanes today, 13 January 2017. SpiceJet enhanced its existing order of 55 aircraft with additional 100 firm B737-8 MAX and 50 purchase rights for B737-8 MAX and wide-body aircraft. With this, the total order of 205 aircraft is valued at $22 billion or Rs 150000 crore at list prices.

This order is the biggest in SpiceJet's history, ending the era of turnaround and marking the beginning of a growth story for the next decade, it said. This fleet acquisition provides SpiceJet the ability to capitalise on the robust demand forecast in the world's fastest growing aviation market.

SpiceJet placed its first order with Boeing in 2005 for next-generation B737s and currently operates 32 next-generation B737s in its fleet and 17 Bombardier Q400s.

The new airplane will deliver 20% lower fuel use than the first next-generation B737s and the lowest operating costs in its class of 8% per seat less than its nearest competitor.

SpiceJet's net profit jumped 103.1% to Rs 58.92 crore on 33.9% rise in net sales to Rs 1378.47 crore in Q2 September 2016 over Q2 September 2015.

SpiceJet is a low-cost airliner.

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