SpiceJet Plans to Buy Up to 150 Passenger Jets, Executive Says

   By Santanu Choudhury 
 

NEW DELHI--SpiceJet Ltd. (500285.BY) plans to purchase as many as 150 single-aisle jetliners as the Indian budget carrier seeks to modernize and expand its fleet.

Kiran Koteshwar, SpiceJet's chief financial officer, said the airline is in discussions with Airbus (AIR.FR) and Boeing (BA) and is considering either making the entire order with one of the manufacturers, or splitting it between the two. The company is weighing options from Airbus' A320 and Boeing's 737 family of aircraft, he said.

Mr. Koteshwar said the company needs to add new planes in order to be able to offer a "long-term strategic business plan" to its vendors and investors, and to also reduce operating costs while increasing its presence in the country.

"We will have to do this in this financial year," he added.

After making the order, SpiceJet will make a final decision about selling a stake to a foreign airline, Mr. Koteshwar said. He added that talks are continuing with overseas carriers, but declined to name them. He didn't specify the size of the stake SpiceJet is considering selling.

SpiceJet has previously said it plans to sell a stake in the company to raise funds for expansion.

The airline currently owns 18 Boeing, two Airbus and 14 Bombardier Q-400 aircraft.

Write to Santanu Choudhury at [e-mail]

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