SpiceJet ups focus on global markets

The company is considering more international routes as the load factors look promising at about 80%

Kalanithi Maran-owned SpiceJet plans to restructure some of its routes to raise operational efficiency. The company also said it would consider more international routes as the load factors were promising at about 80 per cent.

SpiceJet also said it is on the lookout for a strategic partner to improve the airline's efficiency. Speaking on the sidelines of the company's annual general meeting (AGM) held in Chennai, SL Narayanan, CFO, Sun Group, said: "There was interest coming from many quarters. We're looking for a strong partner who can add value and the investor will be a strategic one since financial investors may not come at this time."

No major developments have taken place, despite meetings with a few interested parties, he added.

"We would align with a strategic partner who can bring best practices, who has better understanding of maintenance, repair and overhaul (MRO). We can do interlining and can extend our network through this partnership," Narayanan said. He ruled out the company appointing investment bankers and rejected market buzz that it was in talks with Tiger Airways and others.

The airline said it was not too worried about new players coming into India, but expected increased competition to bring out the best from the company.

On the impact the Tata's tie up with Air Asia and Singapore Airlines would have on it, Narayanan said, "We are prepared and will give a strong fight by concentrating on the product market and customer, with an eye on profitability."

"We don't mind losing market share, but our focus is to strengthen the bottomline," he said

In the last two years, on three occasions the promoters had infused money. At present, the promoters' holding stands at 48.59 per cent. To address the rising fuel cost, the company has lined up different strategies, including flying to certain states where taxes are low, and to more international destinations where ATF prices are competitive. "A full-fledged team tracks fuel burning on the aircraft," he said.

The airline had shortlisted around five candidates for the post of CEO, which fell vacant after the exit of Neil Mills early this year. Most of them are expats, said Narayanan, without giving further details. It also plans to lease aircraft from the Bank of China.

The lease will be for 9-12 years, he said.The airline will lease aircrafts from Bank of China, he said without any details. The lease will be for 9-12 years, he said.