SpiceJet Signs a Letter of Intent with Bombardier for up to 50 Q400 Aircraft

Tuesday, June 20, 2017

LE BOURGET: SpiceJet announced today from the International Paris Air Show, that it has signed a letter of intent (LOI) with Bombardier Commercial Aircraft, for up to 50 Q400 turboprop airliners. The LOI includes 25 Q400 turboprops and purchase rights on an additional 25 aircraft.
Based on the Q400 turboprop list price, an order could be valued at up to US $ 1.7B billion. This would be the single biggest order for the Q400.
“I am delighted to announce this new order for 50 Q400 planes. SpiceJet operates India’s largest regional fleet and is the only organized operator in this space. This order will help us further increase connectivity to smaller towns and cities and help realise Prime Minister Narendra Modi’s vision of ensuring that every Indian can fly,” said Ajay Singh – Chairman and Managing Director, SpiceJet. “Our passengers will be able to fly to more cities and help expand India’s already booming aviation market.”
“I congratulate SpiceJet on this new order for 50 Q400 planes. This latest aircraft order by SpiceJet, which has been an enthusiastic supporter and participant of India's regional connectivity scheme, will help further take forward the government’s vision to provide air connectivity to the common man. It is also a testament to the huge demand for air travel in the smaller towns and cities of India,” said RN Choubey, Secretary, Ministry of Civil Aviation, Government of India.
“We are proud to sign this agreement as it is another demonstration of the Q400’s superiority in the turboprop market. When finalized, the repeat order will increase the Q400 aircraft fleet in the fast-growing market in the Asia-Pacific region and will launch the high-density 86-passenger model of the Q400 aircraft in India,” said Fred Cromer, President, Bombardier Commercial Aircraft. “This is also compelling evidence that the demand for turboprop aircraft is healthy in short-to medium-haul markets that can’t economically support jets that are more expensive to operate.”
“The Q400 is the largest turboprop aircraft available on the market and the 86-seat configuration will support SpiceJet develop its domestic operations from Tier-2 and Tier-3 cities across India,” said François Cognard, Vice President, Sales, South-Asia and Australasia. “Our continued partnership sets the stage for a brighter future, and years of profitable and efficient operations for SpiceJet.”
SpiceJet operates a fleet of 35 Next-Generation 737s and 20 Bombardier Q400s. Since 2010, SpiceJet has taken delivery of 15 Q400 aircraft. The airline currently operates 20 Q400 aircraft in a 78-seat configuration to domestic and international destinations. When concluded, this fleet expansion will provide SpiceJet the ability to grow profitably and leverage the robust demand forecast in the world’s fastest growing regional aviation market.
Bombardier’s Q Series turboprops and CRJ Series regional jets have made significant advances in the Asia-Pacific region where approximately 190 aircraft – including more than 165 Q Series turboprops -- are in service with or on order by over 25 customers and operators. Bombardier has recorded firm orders for a total of 585 Q400 aircraft.
About Bombardier
Bombardier is the world’s leading manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.
Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability North America Index. In the fiscal year ended December 31, 2015, we posted revenues of $18.2 billion.