India-based low-cost airline SpiceJet has agreed to purchase up to 205 aircraft from US manufacturer Boeing, potentially worth $22bn.

The deal includes 100 new 737 MAX 8s, 13 additional 737 MAXs and an option to buy 50 more jets.

It further includes SpiceJet's previously placed orders for 42 MAX aircraft.

"With the next-generation of 737 and the 737 MAX, we are sure that we can be competitive and grow profitably."

SpiceJet chairman and managing director Ajay Singh said: "The Boeing 737 class of aircraft has been the backbone of our fleet since SpiceJet began, with its high-reliability, low-operation economies and comfort.

"With the next-generation of 737 and the 737 MAX, we are sure that we can be competitive and grow profitably."

The carrier currently operates 32 next-generation 737 aircraft.

Boeing vice-chairman Ray Conner said: "The economics of the 737 MAXs will allow SpiceJet to profitably open new markets, expand connectivity within India and beyond, and offer their customers a superior passenger experience."

Equipped with CFM International LEAP-1B engines, advanced technology winglets and other features, Boeing’s 737 MAX is expected to offer 20% less fuel consumption than the first next-generation 737s.

Last week, Boeing won an order to provide three next-generation 737-800 aircraft to South Korean budget airline, Jeju Air.

The $300m deal is anticipated to help Jeju Air to enhance its position in North-East Asia.

Image: Artist's rendition of a Boeing 737 MAX in SpiceJet livery. Photo: courtesy of Boeing.