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SpiceJet ready for regional take-off

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Mihir Mishra New Delhi
Last Updated : Jan 20 2013 | 2:09 AM IST

To begin operation from July 14 in Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Maharashtra

Low-cost carrier SpiceJet will start operating its regional subsidiary from July 14 with two Bombardier Q400s, according to a senior executive.

“The carrier will have its base in Hyderabad and will operate flights in the range of one to two hours from the base city,” the executive said on condition of anonymity. It will operate in Andhra Pradesh, Tamil Nadu, Karnataka, Kerala and Maharashtra.

“Apart from the fleet configuration, the model, including fares, will be same as SpiceJet’s. With these set of aircraft, we will be operating at various airports where our existing fleet of Boeing 737s cannot land,” he said.

The Gurgaon-based carrier will start receiving Q400, the first commercial aircraft from Bombardier to operate in India, from June 21. It will get the second Q400 on June 28, the third on July 18 and the fourth by July-end. It will receive 11 of the 15 Q400s it had ordered by the end of this financial year.

The Q400s, which costs around $30 million, has a 78-seat capacity. There are 300 Q400s in operation, mostly in the US, Japan and Australia.

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SpiceJet will also increase its Boeing fleet from 29 to 33 by the end of this financial year. It aims to have a fleet of 70 aircraft, a mix of 45 Boeing and 25 Q400 planes, by 2013-end.

It plans to recruit around 75 people for the launch of its regional operations. “Among the 75 people, many will be pilots and cabin crew. We do not need to recruit more in other departments, as the existing strength will be able to suffice at least initially,” the executive said.

SpiceJet is expected to report profit for the second time in 2010-11. For the first time, it had posted a profit of Rs 61.45 crore in 2009-10. It reported a 15 per cent drop in profit after tax for the December quarter at Rs 94.4 crore, compared to Rs 108.9 crore a year earlier. Revenue rose 29 per cent to Rs 830.1 crore from Rs 642 crore.

SpiceJet shares today closed marginally higher at Rs 39.75 on the Bombay Stock Exchange.

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First Published: May 25 2011 | 12:21 AM IST

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