Spicejet soars 7% after placing Rs 23,000-crore Boeing order
The airliner has placed an order for 42 Boeing 737 MAX aircraft. The delivery will begin in 2018, a Reuters report quoted CFO of Sungroup as saying.
By ET Online |
MUMBAI: Shares of domestic airliner Spicejet took off on huge volumes following reports that the company has placed an order for 42 Boeing 737 MAX aircraft.
The order is worth $4.3 billion (Rs 26,906 crore; reference rate: 1 dollar = Rs 61.15) without adjusting for inflation or price discounts. All the 42 aircraft will be powered by engines made by General Electric.
According to an analyst tracking the sector, the company has been in talks with Boeing for over a year to buy planes. The new order will attract investors into the company.
“The delivery of the new jets will begin in 2018,” a Reuters report quoted S L Narayanan, chief financial officer at SpiceJet's parent Sungroup.
The payments for the order will be closer to the delivery date, he said.
“Narayanan said some payments for the latest order would be adjusted against the 12 Boeing 737 NG planes from an ongoing order SpiceJet will be swapping for 737 MAX,” the Reuters report added.
The company is trying to woo vacationers by offering huge discounts ahead of the Holi festival. Under the guise of 'Super Holi Sales' scheme, its fourth in three months, it is forcing peers like IndiGo and Jet Airways to lower their price as well.
SpiceJet announced a five-day sale on Tuesday offering fares at an all inclusive price of Rs 1,999 for travel between April 14 to June 30. The offer will last for five days.
The low-cost carrier has been discount mode during the fourth quarter of fiscal 2013-14. This is despite the airline announcing a Rs 171 crore loss in third quarter of FY14.
"SpiceJet remains committed to stimulating the market by offering discounted fares for those willing to book early", said Shilpa Bhatia, senior VP and head of sales and distribution for SpiceJet.
The stock has been in a uptrend and has gained over 16 per cent in last six trading sessions.
At 01:00 p.m.; the stock was at Rs 14.85, up 5.02 per cent, on the BSE. It touched a high of Rs 15.20 and a low of Rs 14.05 in trade today. Over 33.93 lakh shares were traded in the counter against two-week average of 26.37 lakh shares.
The order is worth $4.3 billion (Rs 26,906 crore; reference rate: 1 dollar = Rs 61.15) without adjusting for inflation or price discounts. All the 42 aircraft will be powered by engines made by General Electric.
According to an analyst tracking the sector, the company has been in talks with Boeing for over a year to buy planes. The new order will attract investors into the company.
“The delivery of the new jets will begin in 2018,” a Reuters report quoted S L Narayanan, chief financial officer at SpiceJet's parent Sungroup.
The payments for the order will be closer to the delivery date, he said.
“Narayanan said some payments for the latest order would be adjusted against the 12 Boeing 737 NG planes from an ongoing order SpiceJet will be swapping for 737 MAX,” the Reuters report added.
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The company is trying to woo vacationers by offering huge discounts ahead of the Holi festival. Under the guise of 'Super Holi Sales' scheme, its fourth in three months, it is forcing peers like IndiGo and Jet Airways to lower their price as well.
SpiceJet announced a five-day sale on Tuesday offering fares at an all inclusive price of Rs 1,999 for travel between April 14 to June 30. The offer will last for five days.
The low-cost carrier has been discount mode during the fourth quarter of fiscal 2013-14. This is despite the airline announcing a Rs 171 crore loss in third quarter of FY14.
"SpiceJet remains committed to stimulating the market by offering discounted fares for those willing to book early", said Shilpa Bhatia, senior VP and head of sales and distribution for SpiceJet.
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The stock has been in a uptrend and has gained over 16 per cent in last six trading sessions.
At 01:00 p.m.; the stock was at Rs 14.85, up 5.02 per cent, on the BSE. It touched a high of Rs 15.20 and a low of Rs 14.05 in trade today. Over 33.93 lakh shares were traded in the counter against two-week average of 26.37 lakh shares.
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