* To decide between Airbus A320 NEO and Boeing (N:BA) 737 Max
-chairman
* SpiceJet will choose single manufacturer
* Hopes to make order by end-March
* Also in talks to buy about a further 50 smaller planes
* These could be from Bombardier, ATR or Embraer
(Adds details, quotes)
By Matt Smith
DUBAI, Nov 29 (Reuters) - India's SpiceJet SPJT.BO is in
talks with Boeing BA.N and Airbus AIR.PA to buy more than
150 planes, the airline's chairman said on Sunday, predicting he
would decide which manufacturer to place the order with by the
end of March 2016.
Such an investment would cap a remarkable turnaround for
India's second-biggest budget airline by market share, which
came close to collapse late last year after running out of cash.
ID:nL3N0U120D
Co-founder Ajay Singh subsequently bought back into the
airline, acquiring a controlling stake. SpiceJet has reported
profits in the past three quarters, having made losses in the
five preceding quarters.
Singh now wants to more than quadruple the carrier's fleet
from 41 aircraft at present.
"We are in the process of placing a large aircraft order;
the airline will order in excess of 150 planes - we hope to do
that in this financial year," SpiceJet's chairman and managing
director Singh told a news conference in Dubai. Its financial
year will end in March.
"We're looking at both Airbus and Boeing. The (Boeing 737)
Max aircraft as well as the (Airbus A320) Neo. We have received
offers from both of them," Singh told Reuters.
He said the order would be with a single manufacturer,
declining to estimate the likely value of the deal because
negotiations were ongoing.
The airline is generating enough money to pay for the order,
but may also use "various forms of credit financing" should
there be any shortfall, he said, ruling out diluting its equity
to help buy the planes.
SpiceJet also has what Singh described as a "regional
aircraft business" servicing India's smaller cities through a
fleet of 14 Bombardier planes.
The airline is in talks with Toronto-listed Bombardier
BBDb.TO , France's ATR - a joint venture between Airbus and
Finmeccanica SIFI.MI - and Brazil's Embraer EMBR3.SA to
potentially buy a further 50 planes to service this sector, said
Singh.
Earlier this month, SpiceJet reported a small net profit for
the July-September period, helped by sliding fuel costs.
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"The company is looking in healthy shape," Sigh added. "It's
generating cash, it's profitable. If oil prices remain moderate,
(there is) no reason why this profitability shouldn't continue
for the coming quarters."