SpiceJet, the New Delhi-based low-cost carrier, is reviewing its overseas flight plans. The airline will be eligible for flying overseas in May 2010. According to the airline, the plan to go international will depend on the market scenario.
“We are more concerned about the yields and are still evaluating the viability. We will begin international operations only if it makes economic sense and not just because we become eligible to fly international from next year,” Mr Sanjay Aggarwal told Business Line. The Directorate General of Civil Aviation (DGCA) rule states that an airline should complete five years of domestic operations before it becomes eligible to fly to foreign destinations.
“We have filed an application with the DGCA for the regulator’s record that we will be completing the mandatory five years on May 23, 2010. May be in the next 2-3 months we will take a firm call on when to begin operations,” said Mr Aggarwal. Also, SpiceJet will get its 21st aircraft in June 2010, which will also meet the regulation of having a fleet of 20 aircraft before going overseas, he said.
SpiceJet stock closed 1.34 per cent down, at Rs 40.35, on the BSE on Monday. All will be Boeing 737s and it has no plans of ordering wide-body planes for international operations. Mr Aggarwal maintained that as and when the carrier flies overseas, it will retain its no-frill model.
On the routes the carrier is looking at, he said “wherever a Boeing 737 can fly”. Earlier, the airline had said it was examining options of going to Gulf and South-East Asian destinations.
He also said SpiceJet may not require additional funding for the expansions. “We are current on all our payments and have maintained costs at the lower side. Plus, we still have money in the bank, so there is no immediate requirement for cash,” he said.
Source: The Hindu Business Line
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