Tuesday, October 12, 2010

SpiceJet Aims for International Operations Breakeven in 2 Months

Low-fare airline SpiceJet is seeking at over 80% load factor (which means over 8 out of 10 seats on a flight becoming full) inside first month of beginning daily flights between Delhi-Kathmandu including a breakeven of international operations inside first two months.

The airline’s first international flight, between Delhi and Kathmandu, took off on October 7 as well as the daily Mumbai leg is slated to start in March.

SpiceJet’s optimism on load reasons is remarkable, because there are already seven flights a day between the Capital and Kathmandu by carriers including Jet Airways, JetLite, Air India, Kingfisher and Nepal Airlines. Chief Commercial Officer Samyukth Sridharan claimed inside a chat with DNA that SpiceJet will likely be offering the lowest fares on this sector.

“Being a low-cost carrier, we will remain focused on providing the best prices to customers. We have accessible tickets at nearly half the existing cost on Kathmandu and Colombo,” he said.

Sridharan mentioned that SAARC is really a hugely underserved market, particularly by low fare airlines. Even though domestically, 7 out of 10 fliers board low fare carriers, only three in 10 do so on international routes because of the absence of low fare options.

Obviously Saarc is really a large visitors driver for this sort of airlines now.
SpiceJet is offering 1 way ticket to Kathmandu for as smaller as Rs 3,453 (all inclusive) versus an average fare of Rs 5,500-6,000 on other carriers. But travel agents factor out that aggressive pricing will, in all likelihood, be phased out gradually and an all-out fare war on a Delhi-Kathmandu sector was unlikely.

“Legacy carriers may well improve their fares somewhat to attract fliers but a extended word fare war seems unlikely for now...this is aggressive very first pricing,” TAAI president Rajji Rai said.

Meanwhile, Sridharan mentioned that SpiceJet Booking plans to operate up to seven daily flights every to Kathmandu and Colombo inside next six months since it seems to connect more Indian cities to Nepal and Sri Lanka.

Besides, the airline plans also to start flights to Dhaka and Male within a year. SpiceJet will be the first Indian low fare carrier to fly internationally with from New Delhi flights to Kathmandu and from Chennai to Colombo.

Besides the Delhi-Kathmandu service, a daily Chennai-Colombo return flight was inaugurated on October 9.

Now, the airline can also be thinking connections from Kathmandu and Colombo to Mumbai, Kolkata, Ahmedabad and Bangalore for later.

Source: DNA India

1 comment:

  1. Very cool post. I just recently started following your blog, but I look forward to contributing more in the future.


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