Boeing Co. said today a new Indian budget airline has agreed to buy 10 passenger jets, worth $630 million at list prices, with options to buy 10 more.

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BANGALORE, India — Boeing Co. said today a new Indian budget airline has agreed to buy 10 passenger jets, worth $630 million at list prices, with options to buy 10 more.


SpiceJet, headquartered in India’s capital, New Delhi, will purchase midsize Boeing 737-800 passenger jets that can carry up to 189 passengers, said Dinesh Keskar, Boeing’s vice president for sales.


Keskar made the comments at an air show in southern India, where aircraft makers from around the world were exhibiting their products.


The air show in Bangalore is the latest battleground in a high-stakes fight between Chicago-based Boeing and Europe’s Airbus SAS for billions of dollars in potential passenger jet orders in India.


Only 14 million Indians — a tiny fraction of its more than 1 billion people — fly each year. But with rapid economic growth, India’s aviation market is growing at around 25 percent per year.


SpiceJet is to begin services in May with three leased Boeing 737-800s. The first of the 10 purchased aircraft will be delivered in 2006.


India’s first no-frills airline, Air Deccan, began operations in March 2003. Another budget airline, Kingfisher Airlines, is to begin in May. Both opted for Airbus planes to expand their fleet.