Valued At Over $700 Million List

Boeing and New Delhi-based SpiceJet announced Monday that the airline converted its 10 options into an order for five Next-Generation 737-800s and five 737-900ERs. SpiceJet first announced the preliminary agreement for this order in February at the 2006 Asian Aerospace Air Show in Singapore.

The order is valued at more than $700 million at list prices and deliveries are scheduled to begin in late 2007. The options exercised are part of an order SpiceJet originally placed in February 2005. That order included 10 737-800s, the first of which Boeing delivered to the airline in February 2006.

"The Boeing Next-Generation 737 is the most technologically advanced single-aisle airplane, which offers the best technical reliability and lowest operating unit cost, that is vital to our low-cost structure," said SpiceJet Board Director Bhulo Kansagra. "These aircraft will enable us to develop additional routes in India and bring our low fares to even more customers."

The 10 737s will be fitted with Blended Winglets, which Boeing says will improve fuel efficiency, increase range and reduce takeoff noise.

"The 737 continues to play an integral role in meeting the needs of India's rapidly growing aviation market," said Dinesh Keskar, vice president of Sales, Boeing Commercial Airplanes. "We look forward to continuing to work closely with this valued customer as it expands its operations and serves its passengers."

SpiceJet, one of India's newest start-up private carriers, uses a single-class seating configuration on its short- and medium-haul flights within India. SpiceJet first began service in May 2005 with three leased Boeing 737-800s.

The 737-800, which can seat between 162 to 189 passengers, is 1,500 pounds lighter, can fly 260 nautical miles farther and 1,100 feet higher while carrying 12 more passengers than the competing Airbus A320.

The 737-900ER is the same size as today's 737-900, but -- with the addition of a pair of exit doors and a flat rear pressure bulkhead -- will carry 26 additional passengers, raising the maximum capacity from 189 to 215 in a single-class layout.

Boeing reports the 737 Next Generation family has logged 422 gross orders in 2006 including this order.

FMI: www.boeing.com, www.spicejet.com