New Delhi: SpiceJet Ltd, India’s second-biggest low-fare airline, is likely to select Hyderabad airport as its regional hub for the short-haul flights that it plans to start in July.
The carrier is in talks with GMR Hyderabad International Airport, or GHIAL, to seek additional incentives to base its aircraft there, said three industry officials who are familiar with the development.
Currently, Delhi airport serves as the hub for the budget carrier, which has a 13% local market share. Making Hyderabad its base for short-haul flights will help the Gurgaon-based SpiceJet save on fuel costs because of the city’s central location.
The airline, which was acquired by media baron Kalanithi Maran of Sun TV Network Ltd in June, plans to start regional operations using Bombardier Q400 aircraft.
“Hyderabad is definitely a good hub,” said Mohan Ranganthan, a Chennai-based aviation expert. “This is more central and it is closer to most places to connect with international traffic.”
Hyderabad airport may pay back a small amount of the fees levied on passengers carried on SpiceJet’s Q400 from the airport, according to one of the models being discussed, said a SpiceJet official, who declined to be named.
“Essentially, there will be benefits on a per passenger basis, they will reimburse us a certain portion,” said the official.
Besides, SpiceJet will benefit from a waiver of landing and parking charges as aircraft with fewer than 80 seats are exempt from these under government rules.
04/03/11 Tarun Shukla/Live Mint
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