The Hindu Business Line : SpiceJet hoping to clock net profit in Q4

The SpiceJet Chiarman, Mr Siddhant Sharma (standing), with the Director, Mr Ajay Singh, at the brand new winglet aircraft named `Coriander', which started regular operations with its first flight on the Delhi-Goa route, in the Capital on Thursday. — Ramesh Sharma

New Delhi , Feb. 16

SPICEJET, which has 20 Boeing 737 aircraft on order, hopes to report net profit during the last quarter ending May 31 this year.

"We are already making an operating profit and hope to be profitable on a net basis during the last quarter of the first financial year," said Mr Ajay Singh, Director.

The airline took to the skies in May last year and currently flies to 11 destinations with a fleet of five Boeing 737 aircraft.

It has already raised funds for pre-delivery payment of these aircraft through an FCCB issue late last year, according to Mr Singh.

"As the airline takes delivery of more aircraft, we will examine a variety of options including looking at financing through Exim Bank, leaseback of aircraft, and other finance-based options. Our attempt will be to keep as many aircraft on our books as possible."

On Thursday the airline inducted the first owned Boeing 737-800 new-generation aircraft into its fleet. "The new aircraft is with blended winglet technology that will help the airline save over 75,000 gallons of fuel per year. Besides, it could also be beneficial for the passengers as the fares could come down."

Airline officials, however, refused to speculate on by when and by how much fares would come down.

Asked whether the airline was keen to operate abroad, officials said that SpiceJet would not mind flying to some countries in South Asia.

On the merger of Air Sahara with Jet Airways, they said that they expect the combined entity to be more rational in pricing than some decisions that were taken by one of the airlines earlier.

"The combined entity will be answerable to the shareholders; therefore, we hope that the fares they offer will not drop to the ridiculous levels as was the case before the merger was announced," Mr Singh said.

Our Mumbai Bureau reports: The airline is in talks with Boeing for acquiring 10 Boeing 737-900 Extended Range aircraft. "We expect to close the deal shortly," the airlines Chairman, Mr Siddhanta Sharma, said.