SpiceJet to double capacity, fleet; aims at breaking even this fiscal

The country’s second-largest budget carrier, Gurgaon-based SpiceJet Ltd, which celebrates its second anniversary in the Indian skies on Tuesday, will nearly double its passenger capacity and fleet size by the end of this financial year.
The airline has been able to capture a market share of 6.9% ferrying 22.16 lakh passengers a year. Started in 1994 as ModiLuft Ltd partnering Lufthansa AG , the airline shut operations a few years later after its German partner walked out. It was later taken over by the non-resident Indian Kansagra business family in 2001 and renamed Royal Airways Ltd, only to be relaunched in 2005 as SpiceJet, a low cost carrier, with more investors joining in.
Despite consolidation and mounting industry losses, SpiceJet says it will not deviate from its existing low-cost model of flying more frequencies on the same routes rather than expanding to smaller stations.
22/05/07 Tarun Shukla/Livemint

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Categories: SpiceJet May 2007