SpiceJet Thrown Lifeline By Boeing

Boeing has offered Spicejet more than one billion rupees ($16m) to help the struggling Indian carrier with its cashflow problems.

Boeing has offered Spicejet more than one billion rupees ($16m) to help the struggling Indian carrier with its cashflow problems.

According to local media reports, the Seattle-based OEM has released the figure from the booking fee Spicejet paid last year on its order of 42 737 MAX aircraft – a deal valued at $4.4bn at list prices.

Dinesh Keskar, senior vice-president of Asia-Pacific and India sales at Boeing Commercial Airplanes, who did not confirm the exact amount that had been returned to the carrier, said: “It [SpiceJet] is an important customer and aviation in India, with fuel prices low, will only get better.”

Last month, India’s Civil Aviation Ministry approved a strategy to reverse SpiceJet’s fortunes, allowing companies to acquire up to 58 per cent of the airline.

In December the carrier’s fleet was grounded over unpaid fuel bills amounting to $2.2m.

TAGS: Asia
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