SpiceJet set to order 100 planes for Rs 55,000 crore

January 13, 2017

Mumbai, Jan 13: Low-cost carrier SpiceJet which around couple of years back was on verge of grounding its operations due to financial problems, plans to order 90-100 airplane, including at least 50 new Boeing 737 Max.

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The order possibly includes a renegotiated order for 42 Boeing 737 Max plane it made in 2014.

At the current price list, the deal is expected to be over Rs 55,000 crore.

The airline is also likely to induct wide-bodied Boeing 787 on lease for operation on its international routes.

At present, SpiceJet has 47 aircraft comprising 29 Boeing 737s and 18 Bombardier Q400s. A SpiceJet spokesperson refused to comment on the development. The deal is expected to be announced in Delhi on Friday by airline's promoter Ajay Singh.

"Negotiations are going on for quite some time. We expect to complete these negotiations and place the order this financial year," the spokesperson had said earlier. "It's a good development for Indian aviation that SpiceJet is expanding after going through such a bad time in 2014," said Devesh Agarwal, an aviation analyst.

B737 Max are state-of-art fuel efficient planes produced by US-based aircraft manufacturer Boeing in comparison to Airbus's A320 neo planes. Wadia Group-promoted GoAir on Wednesday confirmed an order for 72 A320 neo planes, estimated to be worth over Rs 52,000 crore. This is in addition to the 72 A320 neo ordered earlier, which takes the tally to 144. The airline inducted the first A320 neo in June last year. The airline is expected to start its international operations this year. Similarly, market leader IndiGo, owned by InterGlobe Aviation, has ordered 430 A320neo.

Experts said it will be interesting to see how SpiceJet, if it inducts B787 Dreamliner, will use the aircraft as at present national carrier Air India uses it for long distance flying including Europe, Australia among others. Air India, a full-service carrier unlike SpiceJet, also uses the Dreamliner on some of its high-density routes like Mumbai-Delhi.

"Historically, a low-cost long distance aircraft have not worked profitably. There is a possibility that SpiceJet may just sign an MoU for B787 for later years."

The development seems significant as only till around in 2014 that the airline was struggling to run its day-to-day operations as lessors, airport operators and oil companies refused to give further credit as a result of which scores of flights had to cancelled leading to chaos. However, since then things visibly improved with the airline make operating profits since last several quarters, on the back of low fuel cost and better performance. The revival was led by BJP member Ajay Singh, who took the reins of the airline from earlier owner Kalanithi Maran, had not been taking salary till the airline turns profit. In December, the stakeholders approved the proposal to pay up to Rs 15 crore as annual remuneration to Singh. The airline is also mulling offering ESOPs to some of its employees, so to encourage them to stick with the company for a longer time.

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News Network
May 8,2024

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Congress leader Sam Pitroda has stepped down from the post of Chairman of the Indian Overseas Congress and his resignation was accepted by the party. Congress leader Jairam Ramesh took to X and announced that Sam Pitroda had decided to resign from the key post "of his own accord".

Pitroda had been under fire over his controversial remark that Indians in the East resemble the Chinese while those in the South look like Africans.

"We could hold together a country as diverse as India -- where people on East look like Chinese, people on West look like Arab, people on North look like maybe White and people in South look like Africans. It doesn't matter. We are all brothers and sisters," Pitroda said during an interview with The Statesman.

The Congress immediately distanced itself from Pitroda's remarks, terming them "unacceptable".

"The analogies drawn by Mr Sam Pitroda in a podcast to illustrate India's diversity are most unfortunate and unacceptable. The Indian National Congress completely dissociates itself from these analogies," Jairam Ramesh said in a post on X.

The BJP also hit out at the Congress over Pitroda's remarks and termed them "racist and divisive".

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News Network
May 4,2024

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Canadian Police said they have arrested three Indians they suspect were part of the alleged hit squad that had killed Hardeep Singh Nijjar, a Sikh separatist leader involved with the Khalistan movement, which calls for an independent Sikh state.

Nijjar's killing had become the epicentre of a diplomatic row between India and Canada last year after Prime Minister Justin Trudeau alleged the role of "Indian agents" in the murder. India had rejected the charge as "absurd" and "motivated".

The three arrested Indians - Karan Brar, 22, Kamalpreet Singh, 22, Karanpreet Singh, 28 - were living as non-permanent residents in Alberta for three to five years, said Superintendent Mandeep Mooker, who leads the Integrated Homicide Investigation Team. The police have also released their photos.

They have been charged with first-degree murder and conspiracy to commit murder, showed court documents.

Police said that none of the suspects were known to them earlier and they were investigating their possible ties to the Indian government.

The murder remains "very much under active investigation," Royal Canadian Mounted Police (RCMP) Assistant Commissioner David Teboul told a press conference on Friday.

"There are separate and distinct investigations ongoing into these matters, certainly not limited to the involvement of the people arrested today, and these efforts include investigating connections to the government of India," CTV News quoted him as saying.

Nijjar, a Canadian citizen who was wanted in India on various terror charges, was shot dead outside a gurdwara in Surrey on June 18, 2023. Trudeau's charge against India sparked a massive row later that year with both countries expelling diplomats of the other country.

A fresh row erupted earlier this week after separatist slogans on 'Khalistan' were raised at an event addressed by Trudeau, prompting New Delhi to summon their Deputy High Commissioner and lodge a strong protest.

On the sidelines of the event, Trudeau told reporters that Nijjar's killing had created a "problem" that he could not have ignored.

India rejected his comment and said it once again showed Canada provides political space given to separatism, extremism, and violence. "This not only impacts India-Canada relations but also encourages a climate of violence and criminality in Canada to the detriment of its own citizens," foreign ministry spokesperson Randhir Jaiswal said.

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News Network
May 14,2024

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Jerusalem: Israel and India will continue to deepen their bilateral ties and lead to greater prosperity, Foreign Minister Israel Katz said on Tuesday.

Katz was responding to India’s External Affairs Minister S Jaishankar’s message on the occasion of Israel’s 76th Independence Day.

“Thank you for the warm wishes, FM @DrSJaishankar. In celebration of our Independence Day, Israel and India will continue to deepen our ties and lead to greater prosperity,” Katz said in a post on X.

Earlier in the morning, Jaishankar posted on X a 2:03-minute video showcasing the India-Israel relationship through photos of various bilateral meetings between Prime Minister Narendra Modi, himself, and other Indian ministers with Israel Prime Minister Benjamin Netanyahu and other ministers.

“Congratulate FM @Israel_katz and the people of Israel on the occasion of the 76th anniversary of Israel’s Independence. Mazel Tov!,” Jaishankar posted along with the video and repeated the same message in another post in Hebrew.

Meanwhile, President Droupadi Murmu wished her Israeli counterpart Isaac Herzog as she said on X, “I join the people of India in conveying our best wishes to President @Isaac_Herzog, and the people of Israel on the 76th anniversary of Israel’s independence.”

Lok Sabha speaker Om Birla too took to X to post his greetings to his counterpart Amir Ohana, the Speaker of The Knesset: “On the occasion of Israel’s 76th anniversary of independence, I congratulate Speaker of the Knesset @AmirOhana and the people of Israel.”

Both Murmu and Birla also included greetings in Hebrew.

“Thank you, my dear friend @ombirlakota. May the friendship between our nations grow stronger,” Ohana replied to Birla and also added a line in Devnagari script in Hindi, loosely translated as, “Thank you my dear friend Om Birla. May the friendship between our countries be stronger.”

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