The Hindu Business Line : SpiceJet comes up with Rs 99 offer

RED HOT SPECIAL AT RS 99: The Chairman of SpiceJet, Mr Siddhanta Sharma, and the CEO, Mr Mark Winders, at the launch of the airline in the Capital on Tuesday. — Kamal Narang

New Delhi , May 17

THE scramble to attract air travellers is hotting up with newest airline entrant, SpiceJet Ltd coming up with a `Red hot special fares' with offer of tickets priced as low as Rs 99.

The airline, which commences operations on May 23, will connect six destinations — New Delhi, Mumbai, Goa, Bangalore, Pune and Ahmedabad. It will initially use three Boeing 737-800 planes with an all-economy, 189-seat configuration.

Speaking to newspersons, Mr Mark Winders, Chief Executive Officer, SpiceJet, said, "We are looking at routes that a train usually takes 16 hours to complete. There is a horrendous number of people wanting to fly here but instead have to take a train because of lack of options."

He added that the company was not competing with either Jet Airways or Sahara Airlines.

"Our target customer is not a Jet and Sahara passenger but cost-conscious companies, train travellers, students and vacationers. There are a large number of people to be tapped out here. There is no bottom to that market," Mr Winders said.

As part of its launch plans, SpiceJet will offer 9,000 seats starting at Rs 99 for the first 99 days of its operations. Seats will also be available at Rs 499 and Rs 799 taking the total number of special fare tickets to 30,000.

The airline said that despite the low fares, there would be no compromise on the quality of service.

"Refreshment and water would be complimentary," Mr Winders added.

On the fleet expansion plans, the company will lease another three-four aeroplanes by the end of 2005, will acquire 10 new aircraft in 2006 and have the option of acquiring another 10. It hopes to have 20-30 aircraft in the next two-three years. Investments of $20 million have already been made and the company is raising another $90 million through convertible bonds.

SpiceJet hopes to break even after about six months of operations.

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