SpiceJet in talks to acquire 100 aircraft worth $11 billion: report

Budget airline SpiceJet, which posted profit for two consecutive quarters this calendar year, is in an expansion mode. The carrier is in talks with Boeing Co and Airbus Group to acquire about 100 new narrow-body jets, Reuters reported quoting its chief financial officer.

The report said SpiceJet is looking for a deal that would be worth about $11 billion at the list prices of these aircraft.

The report quoting SpiceJet CFO Kiran Koteshwar said the airline wants to buy more Airbus A320neo and Boeing 737 Max aircraft, to rebuild its fleet after almost losing all business in last year's collapse.

SpiceJet is planning to raise funds either through debt or equity by the end of the financial year to place an order, which would be its biggest ever, the report said, adding that the present talks may or may not lead to a firm order.

However, the fact remains that the airline plans to place an order as per its long-term business plan.

Since last year's bailout, the new chairman Ajay Singh has been focusing on sizeable growth, and for that size also mattered, according to Koteshwar.

SpiceJet currently has a fleet of less than 20 Boeing narrow-body jets, while its market share has shrunk to 12 per cent in June from around 20 per cent a year ago after it cut capacity to stay in business.