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SpiceJet in talks with aircraft makers for a ‘sizable order’, says promoter

Our Bureau New Delhi | Updated on January 23, 2018 Published on August 28, 2015

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DGCA tells airline to charge less for baggage violation

Gurgaon-based no-frills airline SpiceJet is in discussion with the aircraft manufacturers for ordering more aircraft, Ajay Singh, the airline promoter said. 

Singh did not specify whether he was in talks with Airbus, Boeing or any aircraft manufacturer.

“We have not discussed any specific numbers but we expect the aircraft order will be a sizable one. Negotiations have been on for a while and we expect to complete the negotiations and place the order this financial year,” Singh said on the sidelines of a conference on civil aviation organised by the Associated Chambers of Commerce and Industry of India (Assocham).

Singh added that a decision on the 55 Boeing MAX aircraft which the airline had ordered earlier will also be decided during the on-going negotiations.

“We will let you know when we finalise the order. There is no paucity of capital available to SpiceJet. We have many offers of capital, depending on how much capital is required to fund the purchase,” Singh said when asked how the mega order for SpiceJet will be funded.

He added that there were also offers of strategic investment by funds and airlines without getting into specifics.

Asked whether the airline planned to take any more Airbus A-320 on short-term lease, Singh said this would depend on the capacity requirements of the airline.

“If we need capacity and we do not find Boeing capacity we will use Airbus capacity. We are completely agnostic on which aircraft we take on a wet lease basis.”

The airline is to get five more Boeing 737 for the winter period which will be used to operate 40 more flights during the winter schedule.

The flights will be a combination of domestic and international services, Singh added.

Checked-in bag travel

SpiceJet has been asked to charge ₹400 instead of ₹750 from passengers who booked an air ticket for travel without a checked in bag but came to the airport with a checked in bag.

SpiceJet has an offer where a discount of ₹200 is given to every passenger who books a flight with only one hand bag instead of a checked in bag. But if the passenger reaches the airport with a checked in bag then the airline was proposing to charge an additional ₹750.

The Directorate General of Civil Aviation (DGCA) has, however, rejected the airline’s proposal. Instead, it has suggested that the airline ask the passenger to payback the ₹200 discount that SpiceJet offered for travelling without a checked in suitcase.

In addition, the DGCA has capped at ₹200 the additional charge that the airline can impose.

Official sources said that a communication to SpiceJet was being sent on Friday on this issue.

AirAsia India has also been keen to introduce such a scheme but has not done so as yet.

Airlines have been allowed to offer various sops to passengers ever since the DGCA introduced unbundling of services.

The introduction of unbundling also allowed low cost airlines to charge a premium for some seats on the aircraft.

Published on August 28, 2015
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