Budget carrier SpiceJet delays launch of regional operations

Mumbai: Budget carrier SpiceJet will delay the launch of its regional operations by a month as it awaits clearance of $250-million funding from the RBI for its Bombardier Q400 aircraft, said a top official of the company.
The airline was slated to start regional operations from July 15 using the Bombardier aircraft. India's fourth largest carrier by market share has tied up with Export Development Canada (EDC) for funding all 15 of its Bombardier Q400s from the Canadian firm Bombardier with a capacity of 70 seats.
"We were not able to close commercial terms with EDC on time as we were negotiating the best agreement with them. The clearance from the RBI has been sought only 10 days ago and the launch of operations will depend on when the clearance comes," said SpiceJet CEO Neil Mills.
"This has lead to a delay of about three to four weeks and now we are targeting the launch of our regional operations by the end of August instead." Dismissing any hurdles faced by the no- frills carrier in getting approvals from the RBI, the SpiceJet honcho said it is a normal regulatory procedure. "We are doing nothing exceptional so as to delay a clearance from the RBI," he said.
12/07/11 Manisha Singhal/Economic Times

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Categories: New Jul 2011, spicejet Jul 2011