SpiceJet signs $2.7 bn deal with Boeing, Q1 net doubles to Rs 55 cr

NEW DELHI: Fresh from the strong earnings growth for the quarter-ended June 2010 and a new management at the helm, Delhi-based low-cost airline SpiceJet said on Tuesday it has ordered 30 Boeing 737-800 aircraft to take its fleet size to 75 planes by 2018. The deal is pegged at $2.7 billion on the list prices and deliveries for these Boeing will begin from 2014 and continue till 2018.

The company, that reported a maiden full-year profit for the 12 months ended March 31, 2010, saw net profit double to Rs 55.2 crore for the quarter-ended June over the year-ago period. Net sales were up 35% to Rs 708 crore in the period. Its passenger load increased to 88% for the three months ended June compared to 76% year-on-year. SpiceJet expects to grow its revenues 15-20% in the current fiscal year.

SpiceJet, in which media baron Kalanithi Maran recently bought a 37% stake, witnessed a 29% growth in passenger traffic for the first three months of the fiscal beginning April. With a healthy cash-reserve of $125 million, the airline plans to start operating international flights to Male, Kathmandu and Dhaka from September onwards, followed by Colombo as the fourth overseas destination. The low-cost carrier commands a little over 13% market share in the Indian aviation sector.