Spicejet launches flights to Chennai, Hyderabad

Budget airline Spicejet has launched daily flights to Chennai and Hyderabad from here, as a part of its plans to connect 12 tier-II and -III cities across the country.
   
The services, which began on Thursday with the arrival of the first flight from Hyderabad, will be mostly operated by the airline's fleet of Q400 Nextgen Turbotrop aircraft, Spicejet CEO Neil Raymond Mills told reporters on Friday.
   
"Spicejet Airlines has been fast expanding its domestic footprint with Q400 Nexgen turbotrop aircraft from Bombardier. Its fleet addition aims at enhancing air connectivity to tier-II and III destinations including Aurangabad, Bhopal, Goa, Nagpur, Pune, Rajamundhry, Pune, Tirupati, Trivandrum and Vijayawada," he said.
   
The new services offer "affordable and competitive" rates to travellers, the airline official said.
   
The airline had placed orders for a total of 30 Q400 Nexgen which can accommodate 78 passengers and are widely accepted as an ideal short-haul flights.
   
Five aircraft have already been delivered and another two are expected by this month end.
   
The airlines had recently announced the addition of Tiruchirappalli as its 30th destination, he said.
Source: ZeeNews

Indian carriers chart strategy for lean season

India’s domestic carriers, struggling with mounting losses amid a fare war unleashed by Air India Ltd, met in Mumbai on Monday to decide on a strategy to shore up revenue and widen margins in a move that’s being watched by the aviation ministry.

“They want to hike base fares,” said one of three airline officials with direct knowledge of the meeting and what was discussed. All of them declined to be identified because of the sensitivity of the matter.

The post-lunch meeting, which was called at short notice, was held at Mumbai’s Waterstones Club, close to the international airport.

Representatives from state-owned Air India and budget carrier IndiGo, run by InterGlobe General Aviation Pvt. Ltd, didn’t attend.

The Directorate General of Civil Aviation (DGCA), the industry regulator, said it would investigate any efforts at cartelization, but was not aware of any such activity.

“We are watching the price scene situation very closely. There is a fare-monitoring unit in DGCA,” said director general Bharat Bhushan, who has been leading a campaign to root out pilots who’ve got their jobs with the help of forged documents. “So far we haven’t seen fares change.”

Those who attended the meeting included Jet Airways​ (India) Ltd executive vice-president Anita Goyal, Kingfisher Airlines Ltd chief executive officer (CEO) Sanjay Aggarwal, SpiceJet Ltd CEO Neil Mills and GoAir CEO Giorgio De Roni.

SpiceJet’s Mills declined to offer any comment. Email and calls to the Jet Airways’ spokesperson remained unanswered.

Kingfisher’s Aggarwal and GoAir’s De Roni didn’t reply to emailed questions.

The meeting came at the start of the two-week period considered the leanest of the year with many Indians avoiding travel because of religious sentiments, according to one of the officials cited above.

“It’s going to put a lot of pressure on the October-December quarter,” this official said, following the losses posted by all three listed airlines in the April-June period, traditionally considered the second best by way of profitability.

Jet Airways, along with its subsidiary JetLite, made a loss of Rs.128.36 crore, Kingfisher Rs.263.54 crore and SpiceJet Rs.71.96 crore in the first quarter of this fiscal compared with profits for Jet and SpiceJet year-on-year (y-o-y).

The current quarter is expected to be worse and it won’t get much better for the full fiscal, said an analyst.

“Q2 (second quarter) is going to be a disaster,” said Kapil Kaul, South Asia CEO of Centre for Asia Pacific Aviation. “There is a negative sentiment about the airline industry. And Q2 would further increase the downward bias. All the stocks will be serious underperformers. In this year, everyone will lose.”
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Fly to Dubai, Bangkok for Rs 10,000; IndiGo, Spice Jet to launch low cost flights

MUMBAI: If your holidays have been only about Coorg and Jaisalmer so far, now's the time to apply for a passport. The low-cost revolution that drastically brought down airfares on the domestic sector a few years ago is now set to play out on routes to west Asia and south-east Asia. Leading the pack are IndiGo and Spice Jet.

IndiGo will launch flights to Dubai and Bangkok from Mumbai and Delhi in September and to Muscat and Singapore in October. Spice Jet, which currently flies to Colombo and Kathmandu, will be launching flights to other destinations like west Asia and south-east Asia later this year.

The only low-cost carrier which connects Mumbai to south-east Asia is AirAsia, with its flights to Kuala Lumpur. For west-bound flights, Air India Express and Air Arabia offer low-cost connections to west Asia from Mumbai. With attractive launch fares and great deals on offer, even those who had no intention of travelling to these destinations are biting the bait, says Vijay Kesavan, CEO of ticket-booking site akbartravelsonline.

"IndiGo's return tickets from Mumbai or Delhi to Muscat or Singapore, which were priced at Rs 10,000, have sold out," he says. The competition has lowered fares on the Mumbai-Muscat route - this week, the cheapest one-way air ticket for August 30 was Rs 6,900 (taxes included), offered by Oman Air. IndiGo's fares for October are in the range of Rs 6,400, which beats Air Arabia's Mumbai-Sharjah-Muscat fare of Rs 7,800. The October fare to Singapore on IndiGo is Rs 8,500.

Low-cost airlines like Spicejet, IndiGo and GoAir take price war to overseas routes

MUMBAI: Indian full service airlines, buffeted by high fuel costs and intense competition, face new headwinds on their lucrative international routes as budget carriers launch services with rock-bottom fares.

With low-cost carriers launching routes using narrow-body aircraft to overseas destinations within five hours flying time of India, full-service players are being forced to respond with similar no-frills offerings on popular and profitable routes.

Budget airline IndiGo, which in June firmed up a $16.2 billion order for 180 single-aisle Airbus aircraft, has received government approval to fly to Singapore, Bangkok, Dubai and Muscat, and is luring passengers with round-trip fares as low as 9,999 rupees ($220).

By comparison, full service carriers charge between 17,000 and 22,000 rupees for economy class Mumbai-Singapore routes booked a month in advance.

"The entry of IndiGo will help in growing the market. Low cost carriers are creating a new market with a new breed of customers who did not fly international earlier," said Kapil Kaul, chief executive for the Indian subcontinent and Middle East at the Centre for Asia Pacific Aviation (CAPA).

Under Indian aviation laws, an airline needs to locally operate for five years before being assigned overseas routes.

Indian low-cost operator SpiceJet , with just six international flights now among its 200 daily flights, plans to expand its overseas network and has applied for several international routes, CEO Neil Mills said.

"Low cost carriers are much better poised to take advantage of the growth, because India is a very price-sensitive market," Mills told Reuters.
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SpiceJet mulls partnerships with non-Indian carriers

Indian low-cost carrier SpiceJet is exploring the possibility of partnering other low-fare and full-service carriers.

This could help it to increase its footprint in west Asia, southeast Asia and the Commonwealth of Independent States (CIS), said a spokeswoman.

However, she declined to provide details on the airlines SpiceJet is negotiating with.

"SpiceJet will likely start with interlining agreements," she said, adding that this will allow both SpiceJet and its partners to feed into each others' network.

This comes as SpiceJet works to expand its domestic network as it receives more Boeing 737s and Bombardier Q400 turboprops.

The company is looking for a second base for its Q400s in addition to Hyderabad's Rajiv Gandhi International Airport. The turboprops will serve Tier II and Tier III destinations, while the main 737 fleet is based in Hyderabad, Bangalore's Bengaluru International Airport, Mumbai's Chhatrapati Shivaji International Airport and Chennai International Airport.

The carrier has 25 Boeing 737-800s and five Boeing 737-900ERs in service.
Source: Flight Global

SpiceJet to begin Tier-2 and 3 regional service soon

MUMBAI: Private air-carrier SpiceJet Airlines will begin regional operations from Tier-2 and 3 cities like Vijayawada, Tirupati, Mysore, Mangalore, Madurai, Nagpur and Indore from mid-July using the Bombardier Q400 Next Gen turboprop aircraft, a top company official said.

"We have selected Hyderabad Airport as the first base for our operations. We will be flying from Hyderabad to Tier-2 and Tier-3 cities in South and Central India," Spicejet Chief Commercial Officer Samyukth Sridharan told PTI here.

Deliveries of the Q400 aircraft start in the last week of this month, he said.

"We expect the first aircraft to enter into service and become operational by mid-July. The delivery of the first 15 Bombardier Q400 aircraft starts this month-end and will be completed by June, 2012 - over a period of 13 months. The order also has an option to purchase 15 additional aircraft. If this option is exercised by SpiceJet, there would be 15 more deliveries over a period of 24-months," Sridharan said.

The Bombardier Q400 NextGen turboprop aircraft, which can seat 78 passengers, was chosen for SpiceJet's regional operations because it is designed for short-haul routes and has a reputation of being fast, quiet and fuel-efficient.

The aircraft has a unique ANVS (Active Noise and Vibration Suppression) system which renders noise and vibration levels to minimal levels. It also delivers the lowest operating costs per seat in the industry, with a 30 per cent to 50 per cent advantage over other aircraft on short-haul routes, he said.
Source: Economic Times

Jet, Kingfisher, Spicejet rise on ATF price cut

Shares of Jet Airways, Kingfisher Airlines, Spicejet have surged on ATF price cut.

Shares of Jet Airways is currently trading at Rs. 459, up Rs11.45 or 3%. The stock has hit a high of Rs. 461 and a low of Rs. 450.

Kingfisher Airlines shares is currently trading at Rs. 43, up Rs1.05. The stock has hit a high of Rs. 43.80 and a low of Rs. 43.

Shares of Spicejet Ltd is currently trading at Rs41, up Rs1.20. The stock has hit a high of Rs42 and a low of Rs41.
Source: India Infoline

SpiceJet plane suffered bird hit: officials

JAIPUR: A day after a SpiceJet flight from Jaipur to Ahmedabad produced an emergency landing as a result of a snag in 1 of its engines, senior airport officials and also the airline's ground staff concerned have said the aircraft suffered a bird hit.

Following the incident, the Airport Authority of India, Jaipur, has intensified measures to scare the birds away even as the Directorate General of Civil Aviation (DGCA) has yet to ascertain the lead to of the engine problem.

As part of the measures, AAI has elevated the frequency of firing guns to produce bubbles of LPG gas during the air to scare away the birds besides inspecting the runway by a team during the air targeted traffic manage just before each plane lands or takes off.

Airlines owe Rs 1,122 crore to AAI

Airlines operating within the country owe Rs 1,122 crore to Airports Authority of India, Lok Sabha was informed today.

The dues of Airports Authority of India (AAI) against Air India as on January 31, 2011 are Rs 720 crore, Minister of Civil Aviation Vayalar Ravi mentioned inside a written reply.

For Kingfisher, the figure is Rs 257.62 crore, Go Airlines - Rs 6.77 crore, Interglobe Aviation Ltd. (Indigo)- Rs 13.29 crore, Jet Airways - Rs 38.49 crore, Jet Lite (India) Ltd Rs 13.96 crore, Spicejet Ltd - Rs 16.99 crore and Paramount Airways - Rs 4.88 crore.

For others modest or non-operating airlines the dues stand at 50.13 crore.

He mentioned the matter of pending dues is taken up by the AAI with respective airlines from time to time .

The Minister mentioned steps have been taken to increase the facilities at the airports which include modernisation of Chennai and Kolkata Airports, development of 35 non-metro airports of the terminal buildings having state-of-the-art passenger facilities, user friendly amenities, very good ambiance and satellite based navigation system.

Kingfisher regains No.2 spot...IndiGo ahead of AI

Indigo Airlines has gone ahead of Air India by carrying 1.71 lakh more domestic passengers than the national carrier in January this year.

Vijay Mallya-controlled Kingfisher Airlines has regained the no 2 position as compared to its competitors IndiGo Airlines and Air India. Jet Airways along with its budget arm Jetlite continues to be at the top

Indigo Airlines has gone ahead of Air India by carrying 1.71 lakh more domestic passengers than the national carrier in January this year.

The total domestic passengers carried by the Scheduled Airlines of India in January, 2011 were 49.36 lakhs. It may be recalled that the total domestic passengers carried by the Scheduled Airlines of India in December, 2010 were 52.13 lakhs.

The break-up for the month of January, 2011 is as follows:

Air India (Domestic) – 7.79 lakhs, Jet Airways –8.54 lakhs, Jet Lite – 3.72 lakhs, Kingfisher – 9.61 lakhs, Spice Jet – 7.05 lakhs, Go Air – 3.15 lakhs, IndiGo – 9.50 lakhs.

The percentage share of the carriers in the month of January, 2011 is as follows:

Air India (Domestic) – 15.8%, Jet Airways – 17.3%, Jet Lite – 7.5%, Kingfisher – 19.5%, Spice Jet–14.3%, Go Air – 6.4 % and IndiGo – 19.2%.

The seat factor of the domestic airlines in the month of January, 2011 was:

Air India (Domestic) – 69.3%, Jet Airways – 73.9%, JetLite – 74.6%, Kingfisher Airlines – 86.5%, Spice Jet – 82.6%, Go Air –83.3% and IndiGo – 88.6%.

Ajay Singh looking to do a SpiceJet with MDLR

Right after exiting the board of low-cost airline SpiceJet last year, Ajay Singh has initiated the system of investing in another carrier — the beleaguered MDLR Airlines — hoping to breathe new life into it.

New Delhi-based MDLR, a regional carrier, stopped operations in November 2009 after defaulting on lease payments to BAe for its Avro RJ70 aircraft.

According to a source during the know, Singh, who had promoted SpiceJet along with London-based NRI Bhupendra Kansagra, has sought the Ministry of Civil Aviation’s permission to select up around 23% stake in MDLR.

“He (Singh) has employed towards Ministry of Civil Aviation to purchase stake in MDLR Airlines to revive its operations. The software program is becoming processed and the ministry has sought clarifications over a source on the fund,” mentioned the source.

The source, who spoke on condition of anonymity, did not disclose the price at which Singh was buying the stake.

MDLR, which began operations in March 2007, was founded by Gopal Goyal Kanda, a politician from Haryana, and is wholly owned by Murli Dhar Lakh Ram (MDLR) Group.

The company’s schedule airline operating allow has turn out to be defunct as all of the aircraft in its fleet have been deregistered by the Directorate General of Civil Aviation (DGCA) for over a year now. However, its airline operating allow is nonetheless valid.

Singh could not be reached over a phone for your response plus a text message sent to him remained unanswered.

A senior executive with another airline, who did not desire to be named, mentioned even if Singh succeeds in owning stake in MDLR, he will have to begin operations from scratch.

“He will have to get brand new aircraft, set up new engineering and maintenance facility and begin all over again. It will be like setting up a brand new airline, except for applying for the airline operating permit,” he said.

Despite stepping down during the SpiceJet board in August last year, Singh continues to keep around 5% stake during the budget airline even after media baron Kalanithi Maran bought over a majority stake of 37.7% in Spicejet.

Singh, and also the Kansagra family, had re-launched the bankrupt Modiluft Airlines in 2005 after taking it over from industrialist SK Modi, who operated the airline in partnership with Lufthansa in mid-90s.

SpiceJet fought a lengthy legal battle with Modi to settle a dispute over 11.5 million shares on the airline, which the Modiluft promoter claimed have been nonetheless owned by him.

Modiluft was reincarnated as SpiceJet, and is these days the second-largest budget airline after IndiGo, having a marketplace share of 12.9%.

Source: DNA India

Airlines to Hire 5,000 as Aviation Boom Returns

MUMBAI | NEW DELHI: Indian carriers will hire at least 5,000 professionals across categories this year — pilots, cabin crew and airport ground staff — buoyed by the recent boom during the aviation sector which saw high attrition and retrenchment following the onset of the downturn in 2008.

“Airlines had pulled out at least 20% ability during the industry during the downturn. That ability was restored last year and we see airlines adding another 20% ability this year and would be hiring 4,500-5,000 individuals this year,” said Kapil Kaul, CEO of aviation consultancy company Centre for Asia Pacific Aviation, South Asia.

The Indian aviation sector will grow by 18-20% this year, said aviation industry experts. Among airlines, national carrier Air India Airlines and low-cost airlines IndiGo and SpiceJet will add more than 1,000 this year. “Our flights will go up to 350 flights per day from 221 currently. We are during the technique of hiring 200 pilots, 400-500 cabin crew and as many airport ground staff this year at IndiGo,” said Aditya Ghosh, president, IndiGo.

Demand for pilots is rising because of the dearth of professionals. Airlines are chasing expats as the aviation regulator has allowed foreign nationals being employed as pilots till December 13, 2013.

“The fact these days is that all airlines in India are asking for foreign pilots and no single agency can supply those people many numbers. Airlines in India have asked all agencies that these pilots needs to be recruited on an urgent basis,” said somebody directly involved with hiring of expats, requesting anonymity.

In all, airlines are looking for about 230 commanders on an immediate basis , based on recruitment agencies. “We are searching to hire 500-600 pilots to meet the demand,” Jet’s chairman Naresh Goyal had said recently. Jet, which seems to add 49 aircraft, need 100 commanders alone to meet its international expansion plans. Jet Airways , during the downturn, had fired 1,800 flight attendants only to re-hire them following protests and political intervention. It also slashed salaries by up to 25% at greater levels.

GoAir, which plans to add 20 aircraft by 2014, will hire 250 individuals this year with 100 every for cabin crew and ground staff and 50 pilots. The only airline that doesn't look being on an expanding spree stands out as the Vijay Mallya-promoted Kingfisher Airlines . The airline pulled ability by 22% during the downturn, losing pilots to competitive airlines.

Aviation experts, however, feel that the modern-day hiring spree usually do not translate into greater salaries because of inflation and other costs. “Salaries will only go up by 15-20% on an average,” said an expert.

The staffing agencies are conservative in their demand projections. “2010 was a recovery year, which saw world-wide-web addition of 1,500 people, but 2011 is a boom year and we’ll see world-wide-web addition of 3,000 individuals or more,” said Kamal Karanth, MD, Kelly Services India, a global staffing company. Out of these 3,000, two-thirds are going to be cabin crew as well as the sleep are going to be a mix of engineers and pilots. More than the following 5 years, the growth in hiring are going to be among 100% and 200%.”

Source: India Times

International reporting time for domestic flyers?

NEW DELHI: With airlines flying record loads since the Christmas weekend and the rush peaking now, airlines have advised passengers to verify in earlier than usual at crowded airports. SpiceJet passengers flying out of Kolkata this weekend got text messages to report three hours ahead of departure time — the reporting time for international flights! Jet Airways has asked flyers to achieve airports 2 hours ahead of departure time.

"In view of enhanced security at all airports by the Bureau of Civil Aviation Security, Jet has requested all its guests to verify in early to avoid congestion at airports and also allow flights to depart on time. Guests have been advised to report 2 hours ahead of departure time," said a Jet spokesperson. Airline sources say that domestic site visitors is growing incredibly sharply and airports that have not seen expansion are merely unable to cope from the site visitors figures. "In smaller airports like Goa, the security verify line for outbound passengers beings from arrival terminal itself. Kolkata is also choked. Airport expansion plans are taking off at a incredibly slow pace," complained a senior pilot.

While airlines find it difficult to hold on time performance with passengers stuck in serpentine security queues even when it's flight departure time, flyers are suffering too because of poor infrastructure.

Source: India Times

Good Airline Service at Affordable Fares

The airlines has set its typical high and tries difficult to compete with AC coaches of Indian Railways which speaks significantly for the affordable and economical cost of its Flight tickets. As well as the most remarkable factor is that SpiceJet has been awarded with World travel industry Award 2009. Moreover, Skytrax, in the year 2007, voted it as essentially the most low-cost airline in South Asia and central Asia region.

There is 2 aircrafts selected by this airline for fleet in order to have the greater accuracy ion maintenance and offer low fare for the passenger. The 2 aircrafts are Boeing 737-800 with 189 seats and Boeing 737-900ER with 212 seats. The aircrafts provides you a safe, simple and enjoyable journey.

SpiceJet Airlines covers numerous destinations across India touching numerous cities just like Ahmedabad, Bangalore, Chennai, Delhi, Goa, Hyderabad, Jammu, Kolkata, Mumbai, Pune and Srinagar. They offer cheap air tickets for numerous well-known destinations just like Kolkata-Delhi-Kolkata, New Delhi-Goa-New Delhi, Mumbai-Ahmedabad-Mumbai, New Delhi-Hyderabad-New Delhi, Bangalore-Hyderabad-Bangalore, Mumbai-Bangalore-Mumbai, New Delhi-Mumbai-New Delhi, Bangalore-Kolkata-Bangalore, Mumbai-Chennai-Mumbai, New Delhi-Chennai-New Delhi and Mumbai-Delhi-Mumbai.

SpiceJet offer various choices for each a corporation trip including a pleasure trip. They get all of the maintenance aid by KLM and assure you for safe and dependable flights. All of their staffs are well trained and experienced to offer essentially the most feasible service and ensure the maximum comfort for the travelers.

SpiceJet assures you for your great service in the most affordable price. Its main functionality is to offer essentially the most of services inside your budget. They assist you to save lots of dollars that you can invest on some extra shopping or foods although your journey. You are should enjoy the journey should you know you happen to be owning essentially the most deal and that as well without the need of compromising of the standards of services. There are numerous on the net travel services to assist you to of the ticket registration for Spicejet flights. So why delay, go ahead and book your ticket to your most versatile journey of your life.

SpiceJet Q2 net profit at Rs 10.11 cr

SpiceJet has declared its second quarter results. The company’s Q2 net profit was at Rs 10.11 crore versus loss of Rs 101 crore, year-on-year, YoY.

Its income from operations was up at Rs 603 crore versus Rs 449 crore, YoY.

The company's trailing 12-month (TTM) EPS was at Rs 2.75 per share. (Jun, 2010). The stock's price-to-earnings (P/E) ratio was 32.05.

The latest book value of the company is Rs -7.99 per share. At current value, the price-to-book value of the company was -11.03.
Source: India Earnings

Maran launches SpiceJet open offer

Delhi-based low-cost carrier SpiceJet’s new promoters SunTV chief Kalanithi Maran and his business KAL Airways has launched an open supply to acquire an additional 20% stake from the low-cost carrier on October 18. The supply will open on October 18 and close on November 6, said a filing over a Bombay Stock Exchange dated October 13.

In June, the Chennai-based industrialist had clinched a deal to acquire a 37.7% stake from the low-cost carrier for Rs 739.57 crore from American investor Wilbur Ross, his investment organizations as well as the Kansagara family-promoted Royal Holding Services.

Recently, Maran elevated his stake from the budget airline to 25.12% by obtaining 7.42% much more stake via off-market transactions. Shareholders are going to be accessible Rs 57.76 for every share they retain in SpiceJet, translating into a 3% premium more than the closing cost of Rs 56.05 on June 11, 2010. This would involve an outgo of close to Rs 480 crore, taking the overall deal size to Rs 1,220 crore as Maran and his company KAL Airways had clinched the deal to pick up a 37.73% stake in SpiceJet at Rs 47.25 apiece.
Source: Financial Express

Maran buys 7.4% in SpiceJet

NEW DELHI: Sun TV owner Kalanithi Maran has bought 7.4% equity in SpiceJet for Rs 135 crore, taking his direct stake to 25%. SpiceJet informed off-market transaction in a filing to BSE. This is part of the deal happened in earlier this year, when Maran had decided to buy US distress fund owner Wilbur Ross and airline promoter Bhulo Kansagara's combined 37.7% stake.

After raising his stake to 17.7% last week, Maran and his aviation arm KAL Airways has now bought about 2.9 crore shares for Rs 47.25 apiece. He has an option to acquire another 20% stake through an open offer. Following the acquisition by Maran, SpiceJet's CEO Sanjay Agarwal quit the airline and joined Kingfisher. SpiceJet appointed Neil Raymond Mills as its CEO. Mills was recently part of thestartupteamofFlyDubai , a low cost associate of Emirates. Before that, he was part of EasyJet.

There is a growing speculation that Maran may be eying Wadia Group-owned GoAir. At present, SpiceJet is India's second largest LCC with a 12.6% market share, behind IndiGo at 16.4%. GoAir had a share of 5.7%. So acquiring GoAir will make SpiceJet the biggest LCC in the country.

Source : Times of India

SpiceJet takes off as Kalanithi Maran hikes stake to 17.7%

SpiceJet rose 2.65% at Rs 79.30 at 9:11 IST on BSE after Sun TV promoter Kalanithi Maran and his unlisted aviation firm Kal Airways acquired 1.93 crore shares, or 5.03% equity in the firm as part of the deal to acquire 37.7% stake in the firm.

Meanwhile, the BSE Sensex was down 5.10 points, or 0.02%, to 20,537.98.

On BSE, 4.45 lakh shares were traded in the counter as against an average daily volume of 41.33 lakh shares in the past one quarter.

The stock hit a high of Rs 80.25 and a low of Rs 77.70 so far during the day. The stock had hit a 52-week high of Rs 81 on 13 September 2010 and a 52-week low of Rs 32.40 on 28 October 2009.

The stock had underperformed the market over the past one month till 5 October 2010, gaining 6.61% compared with the Sensex's 12% jump. It outperformed the market in past one quarter, gaining 41.11% as against 17.01% rise in the Sensex.

The mid-cap low-cost air carrier has an equity capital of Rs 385.22 crore. Face value per share is Rs 10.

The shares were acquired on 5 October 2010 through an off-market transaction. Maran's direct holding in SpiceJet now stands at 17.72%. In June 2010, Maran and Kal Airways had agreed to buy 37.7% in the carrier from US investor Wilbur Ross and Royal Holdings Services, held by the Kansagra family, for Rs 739 crore at Rs 47.25 a share.

SpiceJet's net profit soared 109.6% to Rs 55.22 crore on 34.9% rise in net sales to Rs 707.86 crore in Q1 June 2010 over Q1 June 2009.

Source

SpiceJet to make good revenues in holiday season

On an average, airlines companies stock have given more than 30% returns in the past two months. Compared to Jet Airways and Kingfisher Airlines, SpiceJet is the least indebted and most profitable one in recent quarters. Due to its low-cost carrier business, the company has been able to cash in on the increasing passenger growth and slight softening of crude oil prices.

In the quarter ended June 2010, the company’s net had an extraordinary jump of more than 100% to `55 crore. In the past six months, there has been a 22% growth in passenger traffic. The buoyancy is expected to continue in the remaining quarters of FY11 given the impending holiday seasons in the third and fourth quarter.

GROWTH PLAN: The company will begin its international operations from this month. The company would retain its focus of a low-cost carrier model and concentrate on South Asia. The company would start its first international flight from Delhi to Kathmandu (base ticket price `1499) on October 7, followed by flights from Chennai to Colombo (base ticket price `999) on October 9. For this expansion, the company will add 30 Boeing 737-800 to its current fleet size by 2014.

At present, the company operates 21 aircraft and it will add 30 aircraft to its fleet size by 2014. The company would have to invest around `12600 crore for the expansion. In the current fiscal, the company would add seven aircraft. This would stretch the company’s balance sheet to a large extent considering the fact that it is the least indebted airlines company. At present, Jet Airways India has a debt of around `13,000 crore, while Kingfisher Airlines and SpiceJet have debt of `5765 crore (as of FY09) and `438 crore (as of FY09), respectively.

Various reports suggest that since Sun TV’s chief Kalanidhi Maran is perceived to be at the helm of the company after acquiring a 37.7% stake through his firm Kal Airways, funds may come from Sun TV Network. At present, Sun TV Network has a cash of around `424.2 crore on its balance sheet. Hence, a part of these funds may come in handy for SpiceJet’s expansion.

More so, the company has internal reserves of around `587 crore. This would also help the airline not overstretch its balance sheet and at the same time carry on its expansion plans. On the other hand, the company may also resort to qualified institutional placement (QIP) for raising funds to foster its growth. In the past few quarters, SpiceJet has reported a load factor (a measure of capacity utilisation) of more 80% and hence going forward with the holiday season, the possibility of increased revenues is higher for the company.

More so, with its new international operations, it would be able to cash in on the holiday season.

Source: The Economic Times

SpiceJet Expands Domestic Network; adds Madurai

MADURAI: Low cost carrier SpiceJet on Monday expanded its domestic network by adding Madurai as its 20th destination and announced a fleet expansion programme over the coming years to meet the growing domestic demand.

The first flight with over 150 passengers from Chennai landed here this morning as the 'cultural capital' was included in the list of one of the major low-cost airliners in India.

The airliner will now operate services between Madurai and Chennai, connecting onwards to Delhi and Mumbai.

Company Director and CEO Kishore Gupta told reporters here that the airliner had placed orders for 30 new aircraft with Boeing starting delivery in 2014 as part of an "aggressive growth plan".

"We hope Madurai's good fortune will give us the launch that we want," he said.

Already having presence in three cities--Chennai, Coimbatore and Madurai--in the state, SpiceJet was mulling adding one more city but that was yet to be finalised, he said.

Two flights will connect Chennai-Madurai daily and it will be connected to Mumbai and Delhi via Chennai.

International operations (Delhi-Kathmandu and Chennai- Colombo) were scheduled to start from October 7 and 9, respectively.

These sectors would be relatively easier in achieving break-even and expansions would be in place after consolidating the company's presence in this route, he said.

Chief Commercial Officer Samyukth Sridharan said the airliner currently operates 22 flights and said another seven flights would be added over the next 14 months.

As part of the expansion plans, SpiceJet Airlines would mull connecting cities such as Lucknow, Thiruvanathapuram and Indore, which were not on its destinations right now.

He said the airliner intended to increase its passenger strength from 65 lakh last year to 85 lakh this year.

He said that today's launch was a result of passengers' demand for connectivity to Mumbai and Delhi.

To a question on the Foreign Currency Convertible Bonds (FCCBs), Gupta expressed hope that it will be completed by the year-end, subsequent to which south Indian business magnate Kalanidhi Maran's stake in the company will go upto 37 per cent.

Source: The Economic Times