On June 19, India’s low cost carrier SpiceJet and American aircraft manufacturer Boeing signed a memorandum of understanding (MoU) for 40 737 MAX airplanes.

The deal is valued at US$4.74 billion at current list prices. It includes 20  pieces of 737 MAX 10, and will convert 20 of the airline’s 737 MAX 8 airplanes of its current order to 737 MAX 10s. SpiceJet will take delivery of its first 737 MAX in 2018.

With this order, SpiceJet aims to expand its operational fleet to 100 aircraft by 2020. It currently operates 35 Next-Generation 737s and 19 Bombardier Q400s.

A press release by the airline states that the entire 737 MAX family will be the most profitable single-aisle airplanes, enabling SpiceJet to offer the lowest seat costs to its passengers. The MAX 10 includes features such as the latest technology CFM International LEAP-1B engines, advanced technology winglets, Boeing Sky Interior and large flight deck displays.

Ajay Singh, the chairman and managing director at SpiceJet says, “As a Boeing 737 operator and current customer of the 737 MAX, we are proud to be a part of the launch of the 737 MAX 10 and to be the first airline in India to order the newest version of the 737, which will enable us to maximise revenue on our dense routes while having a lower unit seat cost. With the introduction of our 737 MAXs next year, we will be able to further expand our network, while keeping our costs low for our customers.”