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India’s airlines grow even faster

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LCC orders 100 new Boeing aircraft
Indian low-cost carrier SpiceJet has agreed to buy 100 new Boeing MAX 737s with an option for 50 more, as it expands in the world’s fastest growing aviation market.
The deal is relief for Boeing, which has only SpiceJet as a major customer in India where a range of new budget airlines are dominating the industry.
“This is an extremely competitive market,” says Ajay Singh, SpiceJet’s chairman. “What this aircraft order does is enhance our ability to be competitive in the future as it helps us reduce costs.”
The airline has about 13% of India’s air passenger market, compared to market leader IndiGo with 40%.
SpiceJet is now the country’s fourth-largest airline behind IndiGo, Jet Airways and state-run Air India – and it has come a long way since being briefly forced to ground its fleet in late 2014 when it ran out of cash.
It is not yet clear where SpiceJet will fly, but it is looking at expanding its low-cost long-haul model.
IndiGo and GoAir have also ordered hundreds of new planes, from Airbus. Boeing thinks India will need 1,850 new aircraft worth $265 billion by 2036.
Reuters

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