Boeing and India - Large order in an area dominted by Airbus - Curt Lewis

Boeing Close to $10.1 Billion Order From India's SpiceJet
U.S. planemaker scores a victory in market dominated by Airbus
Deal for 92 jets may grow based on outcome of negotiations

SpiceJet Said Close to Order $10B Worth of Boeing 737s

Indian budget airline SpiceJet Ltd. is poised to order at least 92 Boeing Co. 737 jetliners as the carrier plots rapid expansion in the world's fastest growing aerospace market.

The transaction, which would more than double SpiceJet's 49-plane fleet, may be closed within weeks after lengthy talks that pitted Boeing against rival Airbus Group SE, people with direct knowledge of the decision said.

The deal includes firm orders for at least 50 of Boeing's 737 Max, and renegotiated terms for 42 of the single-aisle jets that SpiceJet originally ordered in 2014, said the people, who asked not be identified because the discussions are private. The 92 Max jets would be valued at about $10.1 billion at current list prices, before the discounts that are customary for large purchases.

The order would be a record for SpiceJet, which was forced to shut down operations for a day two years ago after it ran out of money, prompting co-founder Ajay Singh to bail out the low-cost carrier. The airline may boost the total if final talks yield bigger discounts and favorable maintenance contracts, one of the people said.

Boeing would gain a stronger toehold in India, where Airbus dominates narrow-body fleets after a string of order victories. IndiGo, Go Airlines India Pvt. and the local unit of AirAsia Bhd. all fly variants of the Airbus A320.

"We expect to complete these negotiations and place the order this financial year," the airline said in an e-mailed statement. A Boeing spokesman declined to comment.