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Aviation
SpiceJet to Buy 30 Boeing
Aircraft for $2.7 billion
The Indian Government has cleared SpiceJet's proposal IndiGo, which hopes to fly to Singapore, Bangkok, Kuala
to acquire 30 Boeing aircraft, worth around $2.7 billion Lumpur and Dubai, however, will have to wait until it
(Rs12,600 crore). SpiceJet, which currently operates a completes five years of domestic operations in 2011.
fleet of 21 aircraft, will induct seven more in the current IndiGo is adding seven new aircraft this financial year
calendar year as it launches overseas flights. The airline and a total 14 A-320s in the next financial year (2011-
plans to operate around 50 aircraft by 2014.
12). It has in-principle approval to acquire 150 aircraft,
The Empowered Committee of the Ministry of Civil worth around Rs65,000 crore. The airline ordered 100
Aviation has cleared the acquisition of 46 new aircraft, Airbus 320 aircraft in 2005 for delivery by 2015-16.
worth a total of over $4.07 billion (Rs19,000 crore), by IndiGo currently operates a fleet of 27 aircraft and has a
three low-cost carriers - SpiceJet, IndiGo and Jet Lite. market share of 16.9 percent.
The new planes will start arriving from November 2010,
JetLite, a wholly-owned subsidiary of Jet Airways, is also
coinciding with US President Barack Obama's state visit
expected to acquire two Boeing 737-800s in November
to India. Overall, the US company Boeing has bagged
2010. JetLite operates a fleet of 23 aircraft and has a
most of the new orders - 32 aircraft - while its European
market share of 7.5 percent.
rival Airbus has got 14.
The Government's green light to SpiceJet comes nearly
SpiceJet, which is 37.7 percent owned by KAL Airways, a
six months after it gave in-principle approval to rival
firm owned by Sun TV chief Kalanithi Maran, reported a
IndiGo to buy 150 new aircraft, at an estimated cost of profit of over Rs61.40 crore in the last financial year - the
around $14 billion (Rs 65,000 crore).
first time since its inception.
SpiceJet, which has completed five years of domestic KAL Airways, which bought the 37.7 percent stake in June
operations required to be eligible for overseas for around Rs746 crore, has the option to acquire
operations, is firming up overseas routes. It plans to another 20 percent equity in SpiceJet through an open
launch flights to Male, Colombo, Dhaka and Kathmandu offer. This would involve an additional Rs480 crore
routes this month.
outgo, taking the overall deal size to Rs1,220 crore.
INDO-US BUSINESS SPECIAL ISSUE
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