Apr 25, 2007

SpiceJet to buy 10 Boeings for $700mn

Delhi-based budget carrier SpiceJet will acquire 10 new Boeing 737 airplanes as a part of its fleet expansion programme. It will spend between $650 million and $700 million for the purpose. The airline would begin taking delivery of the airplanes from the 2008-end and complete the same by 2011.

This low-fare airline would have 35 airplanes in its fleet by the end of 2011. SpiceJet currently operates in 14 cities, including Mumbai, Delhi, Kolkata, Chennai, Hyderabad and Bangalore, with 10 Boeing 737-800 aircraft.

“Boeing 737 can fly non-stop for five hours to West Asia and other closer destinations. However, we have no plans to fly overseas at present. We are not entitled to get rights as we have not yet completed five years of operations,” said Siddhanta Sharma, managing director and CEO of SpiceJet, when asked about its overseas foray.

SECTOR OUTLOOK :

The Aviation sectors look good in the long term with players like jet & sahara joining hands & merging their business after a long tussle.

Also Tata groups & R - Adag group showing their interest in this space will surly light up competition in time ahead.

On the other hand Vijay Mallaya's Kingfisher Airline is growing day By day & has made a mark in very short time.they are also planning hit the capital market in this year.

JET AIRWAYS : Buy @ Cmp

TARGET -- 820 + ( HOLD PERIOD 8 to 12 MONTHS )

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