'International passengers can expect budget prices'

SpiceJet, which has a new owner in Kalanithi Maran, head of the Sun TV, will be India's first Low cost carrier (LCC) to go international in August this year. Spicejet CEO Sanjay Aggarwal speaks to Shobha John:

Why is the airline going international?
Going international was not an emotional decision for us. We want to better utilise our planes. These operations will be an extension of our domestic services. The delay in launch was because we got permission to fly to only three countries -- Bangladesh, Nepal and Maldives. But we want to launch from Sri Lanka first as it will take us just 45 days to put things in place. But the government has concerns about overcapacity, which we have addressed.

Can passengers expect low-cost tickets internationally?
SpiceJet has the lowest ticket price in terms of cost per km and we should be able to leverage that advantage here too. Our costs will anyway be less. Just take sales tax on aviation turbine fuel, which is a major expense of our domestic operations. This would be nil internationally. So yes, passengers can expect budget prices.

Why isn't SpiceJet flying to lucrative Gulf routes?
Many Gulf carriers such as Emirates, Etihad and Air Arabia are already flying to many places in India. They have deep pockets and are fiercely competitive. As an LCC with thin margins, we don't want to take them head on now. We would like to explore West Asia later though.
23/06/10 Shobha John/Times of India

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Categories: Foreign Jun 2010, New Jun 2010, SpiceJet Jun 2010