SpiceJet regional services to take off from July

Mumbai/New Delhi: Low-cost carrier SpiceJet will launch its regional services from July this year, operating on 16 non-metro routes with Chennai, the capital city of Tamil Nadu, as one of its hubs. The airline plans to have at least three bases, one each in the east, north and South regions, for its operations to smaller cities.
SpiceJet will get first of its 15 Bombardier Q400 (regional jet) in June and will use it to launch the services. By the end of this year, it will have eight of these aircraft in its stable. The rest will join the fleet in 2012, SpiceJet CEO Neil Mills said. "Of the 15 aircraft, we plan to have at least 10 for the south Indian market and two each for the east and the north," he added.
SpiceJet is banking on first mover advantage with the launch of regional services as it sees immense potential in the developing market.
It is also using the strategy to counter the growing market share of its competitor, Gurgaon-based budget airline IndiGo , which recently ordered 180 Airbus A320s and has become the number two airline along with Kingfisher Airlines . SpiceJet, however, is at number four with a 13.6% market share. It operates 169 flights daily with a fleet of 29 aircraft.
"Each competition has a strategy of its own. They (IndiGo), are going with a narrow body expansion plan and are also adding international routes, we have decided to grow organically on the domestic routes. In any case, SpiceJet grew by 20% on the Boeing fleet and in the regional market also we will grow by 20%, so this is the additional growth for SpiceJet as compared to the competition," Mr Mills said.
31/01/11 Manisha Singhal & Anindya Upadhyay/Economic Times

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Categories: spicejet Jan 2011