SpiceJet inks $1.1bn sale, lease back pact for 16 Boeings

BANAGLORE/NEW DELHI: Spicejet, Babcock & Brown Aircraft Management (BBAM) and its long-term strategic partner Nomura Babcock & Brown (NBB) have announced the signing of a sale and lease back agreement.

This agreement covers sixteen new Boeing 737-800/-900ER aircraft valued at over $1.1bn (about Rs 5,000 crore) based on the manufacturer’s list prices.

The aircraft will be delivered over approximately 22 months beginning in January ’07. Earlier, SpiceJet completed a similar deal with BBAM for its first four B737-800 aircraft deliveries.

Together with the new deal, SpiceJet has now completed the financing of its first 20 aircraft orders for Boeing 737-800/-900ER aircraft.

SpiceJet’s chairman Siddhanta Sharma, said, “The newly acquired capacity will go a long way to augment our network in the country and would greatly assist us in fulfilling our vision of being India’s most preferred low cost carrier.”

Commenting on the deal, BBAM president Steve Zissis said the introduction of these aircraft, along with SpiceJet’s low-cost business model would further improve the airline’s dominance in the Indian market.