The Hindu Business Line : SpiceJet plans fleet acquisition

Low-cost airline SpiceJet will induct 23 new aircraft by the end of 2008, as part of its efforts to expand and reach more destinations in the country. At present, it has a fleet of 6 aircraft and operates 49 daily flights.

The new aircraft would be Boeing 737, 800 series, wide-bodied with capacity to have 189 all economy class passenger seats.

The airline is in the process of firming up funding mechanisms to buy the aircraft, the Associate Vice-President (Marketing & Planning), Mr Sanjay Kumar, told newspersons here today.

SpiceJet, which has completed a full year of operations, carried 1.6 million passengers during the year, with a high load factor of over 86 per cent. It caters to 11 destinations daily offering 8,900 seats and has a market share of 6 per cent, he said.

More destinations

Once, the acquisition of the new aircraft is completed, the airline would have a fleet of 29 planes, operate over 250 flights to reach 24 destinations and offer 35,000 seats per day. By end of 2006, 11 new aircraft are expected to be purchased and inducted, Mr Kumar said.

The airline is well prepared to meet growing competition in the low-cost, no frills market. "It has also established the reliability and service efficiency within a short span of time," Mr Kumar said.

Courier services

At present, passenger services are the main focus of the airline, though on-board courier services have been recently launched in a small way.

In addition to the concentration on metros, SpiceJet also will open new routes and connect Tier-I & II cities.

SpiceJet has also signed up with over 65 Spice Shops across the country.

These Shops allow customers to make a phone booking and pay at these locations. A network of 3,400 travel agents to make bookings has been established.