As per the deal, SpiceJet will exercise options for ten next generation 737s - five 737-800s and five 737-900ERs - with options for ten more.
Sources said SpiceJet's deal with Boeing is worth around $1.4 billion as per the list price. When contacted, company officials, however, declined to comment on the valuation of the deal.
In a statement, SpiceJet director Ajay Singh said the new planes would give the airlines better options to formulate competitive price strategies.
"It will also stimulate market for better pricing," he added. SpiceJet said the Boeing 737-900 aircraft would be ordered in a single economy class configuration like its other aircraft and would be deployed on high capacity trunk routes like Delhi-Mumbai and Delhi-Bangalore.