Gurgaon-based SpiceJet, India's second-largest budget airline, has signed a deal with Boeing to buy 42 737 MAX planes in a deal worth $4.4 billion (around Rs 25,000 crore) at list prices. The news sent the company's shares up 7.5% intra-day, before giving up some gains to end at Rs 15, a rise of 3.3%.
The order, first reported by HT in January, was announced at the India Aviation air show in Hyderabad on Wednesday.
Delivery of the new jets will begin in 2018, said SL Narayanan, group chief financial officer at SpiceJet's parent, Sun Group.
Some payments for the latest order would be adjusted against the 12 Boeing 737 next generation planes from an ongoing order SpiceJet will be swapping for 737 MAX, he added.
SpiceJet, controlled by media baron Kalanithi Maran, has 57 planes and operates over 350 daily flights to 51 places, including nine global destinations. The airline is expected to report a record full-year loss of about Rs 1,186 crore in 2013-14, equivalent to its combined losses from 2007 to 2013, according to aviation consulting firm Centre for Asia Pacific Aviation.
SpiceJet has ordered 90 airplanes from Boeing and has taken delivery of 31 of them.
Naresh Goyal-led Jet Airways, the country's second-largest airline by market share, has received the government's nod to buy 50 737 MAX planes.
The 737 Max is expected to deliver 13-14% more fuel efficiency than current Boeing 737 NG aircraft.