SpiceJet Plans To Buy 50 Turboprop Planes For $1.7 Billion

No-frills airline SpiceJet on Tuesday announced plans to purchase 50 Q400 turboprop aircraft worth $1.7 billion (over Rs. 10,900 crore) from Bombardier, a day after signing a pact for buying 40 Boeing 737 MAX planes.

SpiceJet, which has drawn up ambitious expansion plans, has signed a letter of intent with Bombardier Commercial Aircraft to buy up to 50 Q400 turboprop aircraft.

The letter of intent is for 25 Q400 turboprops and purchase rights for an additional 25 aircraft. These are 86-seater planes.

"Based on the Q400 turboprop list price, the order could be valued at up to $1.7 billion. This would be the single biggest order for the Q400," SpiceJet said in a release.

At the current exchange rate, the order will be worth over Rs. 10,900 crore.

"I am delighted to announce this new order for 50 Q400 planes... This order will help us further increase connectivity to smaller towns and cities," SpiceJet CMD Ajay Singh said.

The initial pact was signed at the ongoing Paris Air Show.

Civil Aviation Secretary R N Choubey said SpiceJet's latest order will help further take forward the government's vision to provide air connectivity to the common man.

Bombardier Commercial Aircraft President Fred Cromer said that once finalised, the repeat order will increase the Q400 aircraft fleet in the fast-growing market in the Asia-Pacific region and launch the high-density 86-passenger model of the Q400 aircraft in India.

SpiceJet operates a fleet of 35 737s and 20 Q400s.

Since 2010, the airline has taken delivery of 15 Q400 aircraft.

"The airline currently operates 20 Q400 aircraft in a 78 -seat configuration to domestic and international destinations.

"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.

On Monday, SpiceJet had inked an initial pact with Boeing Co for 40 737 MAX planes worth $4.7 billion.