The Hindu Business Line : SpiceJet yet to firm up funding plans for aircraft acquisition

(FROM LEFT) Mr Ajay Singh, Director, SpiceJet; Mr Scott Bayman, CEO, GE India; Mr Siddhanta Sharma, CEO, SpiceJet; and Mr Roopam Asthana, CEO, SBI Cards; at the launch of SBI Card and Spicejet co-branded MasterCard in the Capital on Monday. — Ramesh Sharma

New Delhi , March 27

The low cost airline, SpiceJet, is yet to firm up the funding plans for the Boeing 737 aircraft that it plans to induct shortly.

"We have various options of either going in for debt or getting them financed.

"However, we are yet to take a final decision," said the airline's Director, Mr Ajay Singh.

The airline, which currently has five Boeing 737 aircraft, plans to induct another five by the end of the year.

The airline has already been allotted "committed slots" by Boeing for the 30 aircraft that it plans to induct till 2008.

"The airline currently offers about 2,10,000 seats a months that we plan to double by the end of the year.

The airline also hopes to increase its market share to 10 per cent by the end of the year," said Mr Singh.

The airline that operates an all Boeing fleet has no plans to acquire small aircraft.

"We will operate to smaller cities but are not looking to acquire smaller aircraft.

Small aircraft are not part of the business plan that has been drawn up," said the airline Chief Executive Officer, Mr Siddhanta Sharma.

Asked on plans of SpiceJet to operate in the international skies, Mr Sharma said that the airline was not keen to operate on international routes.

"There is enough demand in the domestic market," he said.

Meanwhile, the airline today tied up with State Bank of India to launch the SpiceJet SBI Master Card credit card. The new card offers a variety of benefits to the holder including reward points for purchase of SpiceJet air tickets, a complimentary insurance cover of Rs 50 lakh and loss of baggage cover of Rs 10,000.