SpiceJet bets big on Bombardier fleet

SpiceJet, the low-cost air carrier majority-owned by Kalanithi Maran, expects its new fleet of 15 Bombardier Q400 next-generation turboprop aircraft—which it anticipates to be completely delivered by next July—to start contributing to its bottom line in 12 to 18 months from now, said chief executive Neil Mills.
Announcing the commissioning on Thursday of the first four Q400s for regional connectivity operations, Mills said the airline was expecting 75 per cent of this fleet’s capacity to be used.
The four 78-seater Q400s would connect Hyderabad with 12 Tier-II and Tier-III destinations—Aurangabad, Bhopal, Goa, Indore, Madurai, Mangalore, Nagpur, Pune, Rajahmundry, Tirupati, Thiruvananthapuram and Vijayawada. Commercial operations commence from September 21, with flights to Tirupati.
The inaugural all-inclusive fare to these cities starts at Rs 999. The limited seat offer is valid for bookings for the first 14 days of commercial operations.
SpiceJet had placed an order for 30 Q400 aircraft and took delivery of the first four early this month.
“We are buying these 15 aircraft with the $270-million funding from Canada's export finance agency, Export Development Canada. We have the option to induct 15 more, but we will exercise it later, going by the demand the current fleet generates,” Mills said.
16/09/11 Business Standard

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Categories: Foreign Sep 2011, spicejet Sep 2011