SpiceJet set to order 100 big planes as net profit rises again

Ajay Singh-led SpiceJet, which reported its second straight quarterly profit on Tuesday, is likely to place a fresh order of 100 big jets this year.

“We will place a fresh significant order this year,” Singh told HT.

Sources said the budget carrier, which has witnessed a dramatic transformation, since Singh bought out Kalanithi Maran’s stake in January, could place an order for around 100 planes.

SpiceJet already has on order 42 Boeing 737 Max planes.

The 2015 list price of B737 Max-8 is $110 million (about Rs 705 crore). Singh, however, refused to comment on whether the airline would order jets from Boeing or Airbus.

“SpiceJet will go with whosoever offers best commercial terms,” said a source.

“These results have given us some breathing space to be able to plan the future of SpiceJet in a more constructive manner. And for this, we will place a fresh order of aircraft,” Singh said.

SpiceJet reported a net profit of Rs 71.8 crore for the April-June quarter, helped by a steep 42% reduction in costs and higher seat occupancy.

The budget carrier has a fleet of 18 B737s and 14 Q400s apart from two Airbus planes it has on wet lease.

“We are working hard to build a world-class airline again. These results show that we are on the right path,” said Singh.