Indian discount airline SpiceJet Ltd said on Tuesday that it has agreed to convert options for 10 Boeing Co 737 planes into firm orders and take an additional 10 options in a deal worth $1.4 billion at list price.
New Delhi-based SpiceJet said the order, announced at the Asian Aerospace air show in Singapore, would include five 737-800 planes and five of the longer-range 737-900ER model.
A spokesman for Boeing said the deal was expected to be finalised by mid-year.
SpiceJet began operations last May and said earlier this month that it expected to break even by next month.
It competes in a fast growing and increasingly tough local market with state-owned domestic carrier Indian Airlines, Jet Airways Ltd, Go Air and Air Deccan.
An estimated 19 million domestic passengers travelled by air in India during the year to last March, and the market is forecast to grow by more than 20 per cent a year over the next five years, boosted by rising incomes and lower fares.
SpiceJet shares were up 2.3 per cent at Rs 74.50 at 0642 GMT. The stock has fallen about 10 per cent so far in 2006.
{{/usCountry}}SpiceJet shares were up 2.3 per cent at Rs 74.50 at 0642 GMT. The stock has fallen about 10 per cent so far in 2006.
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