Bombardier Inc. (TSX:BBD.B) won an order from SpiceJet Ltd. for as many as 50 turboprop planes worth $1.7 billion as the Indian budget carrier expands its fleet to meet demand for regional air travel. In addition, SpiceJet has taken the purchase rights for 25 additional Q400 aircraft.
The deal with Bombardier, which was announced at the Paris Air Show on Tuesday, is valued at approximately $805 million with each Q400 aircraft sporting a price tag of about $32.2 million. These are 86- seater planes.
This latest rights exercise brings Philippine Airlines’ total firm order to twelve Q400 aircraft.
“I am delighted to announce this new order for 50 Q400 planes. The acquisition will help us further increase connectivity to smaller towns and cities and help realize Prime Minister Narendra Modi’s vision of ensuring that every Indian can fly”, SpiceJet chairman and MD Ajay Singh said. Aviation secretary R N Choubey said: “I congratulate SpiceJet on this new order for 50 Q400 planes”. The move comes as it looks to grow its regional footprint in India and nearby global destinations such as Sri Lanka.
“When concluded, this fleet expansion will provide SpiceJet the ability to grow profitably and leverage the robust demand forecast in the world’s fastest growing regional aviation market”, the release said. “Our continued partnership sets the stage for a brighter future, and years of profitable and efficient operations for SpiceJet.”SpiceJet operates a fleet of 35 Next-Generation 737s and 20 Bombardier Q400s”.
Since 2010, the airline has taken delivery of 15 Q400 aircraft.