SpiceJet has abandoned previously announced plans to lease in two B787-8s this winter for use in starting long haul, low-cost flights to Europe. Chief Executive Officer (CEO) Ajay Singh told Forbes magazine the Indian budget carrier would instead focus on narrowbody aircraft for the foreseeable future.
On that note, Singh said Boeing (BOE, Chicago O'Hare) would have to dramatically cut prices on its B787 offerings if budget operators such as SpiceJet are to embrace the longhaul niche. Earlier this year, Singh alluded to studying the B787-10 from Boeing (BOE, Chicago O'Hare) and the A350-1000 from Airbus (AIB, Toulouse Blagnac) but gave no firm commitment to entering the market.
“As a concept I think there is potential in this low-cost long-haul business," he said. "But to make the fares lower and to offer it profitably, you need to ensure that your costs are significantly lower. And, at the price points at which these aircraft are today, we find that’s a bit of a challenge.”
10/10/17 ch-aviation
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On that note, Singh said Boeing (BOE, Chicago O'Hare) would have to dramatically cut prices on its B787 offerings if budget operators such as SpiceJet are to embrace the longhaul niche. Earlier this year, Singh alluded to studying the B787-10 from Boeing (BOE, Chicago O'Hare) and the A350-1000 from Airbus (AIB, Toulouse Blagnac) but gave no firm commitment to entering the market.
“As a concept I think there is potential in this low-cost long-haul business," he said. "But to make the fares lower and to offer it profitably, you need to ensure that your costs are significantly lower. And, at the price points at which these aircraft are today, we find that’s a bit of a challenge.”
10/10/17 ch-aviation
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