The Hindu Business Line : SpiceJet to order for 10 more Boeings — `Posts highest load factor among airlines'

SPICEJET will place orders for 10 more Boeings next year which will include, B737-900ER (extended range) aircraft, making it the first Indian carrier to order for the aircraft maker's latest showpiece.

The SpiceJet Chief Executive Officer, Mr Siddhanta Sharma, told Business Line that the orders are likely to be placed sometime in August next year. SpiceJet had ordered for 10 Boeing 737-800s and 10 others were on option. These options will now get converted to firm orders. "We have not yet decided how many of them will be B737-800s and B737-900ER," he said.

Mr Sharma said between May and October, the airline posted the highest PLF (passenger load factor) among all airlines in the country. Its PLF was around 84 per cent compared with its closest competitor whose PLF was around 74 per cent. He said one of the reasons for such a high PLF was because of acceptance of the product by the customers. "I think it was a combination of attractive fares and the product acceptance by passengers," Mr Sharma said.

The B737- 900ER, which was codenamed B737-900X, carries more passengers over a longer distance and has a single class layout. Though it is of the same size as that of B737-900, it has blended winglets, other advanced - technology wing enhancements and auxiliary fuel tanks which gives it an increased range of 3,200 nautical miles (5,900 km), which is 500 nautical miles more than the 737-900s. It has an additional pair of exit doors and a flat rear pressure bulkhead which allows 26 more passengers to be accommodated taking the number of seats in the aircraft to 215. Indonesian low-cost airline, Lion Air, is Boeing's launch customer for B737-900ER.

Mr Sharma said the airline had raised a total of around $92 million out of which $80 million was raised through the FCCB. Out of the total amount, $78 million will go towards paying deposit for buying aircraft while the rest will go towards expansion of the company. Deliveries for the first set of 10 Boeing 737-800s, will begin from February 2006. The airline currently operates five Boeing 737-800s which are on lease.

SpiceJet, which is listed on the Luxemburg stock exchange, has also got the UAE-based Istithmar as one of its investors. It has a 3 per cent stake in the airline and has also subscribed to the FCCB by investing $37.5 million. It had earlier invested around $12.5 million in the airline. Goldman Sachs too has subscribed to the FCCB for an amount of $42.5 million.