Singh: Makeover time
New Delhi, Feb. 25: SpiceJet owner Ajay Singh is planning to ramp up the airline’s fleet to 40 from 32 aircraft for the winter schedule.
He is looking to add Boeing jets and do away with some of the smaller Bombardier aircraft.
The airline will also concentrate on foreign destinations within a distance of 2-5 hours. The strategy is similar to the one of former Indian Airlines, which used to make money by focusing on flights to South Asia, Gulf countries and a few Southeast Asian destinations.
“We want to expand the fleet to 40 from the current mix of 17 Boeings and 15 Bombardiers. We will take a call on how many Bombardiers we will retain but new additions will be of Boeings,” said Singh, who recently took over the ownership of the airline from the Maran family.
The use of the 70-seater turbo-prop Bombardier Q400 for feeder services in Asia has proved too costly for the airline. Analysts maintain that Singh will either end the lease contracts for the entire set or prune the fleet size to add more wide-bodied Boeing aircraft, with lower operating cost per passenger.
“We have managed to revive consumer interest. Our airline is flying at 80 per cent plus on most routes. We have paid back all statutory dues. Things are looking good and its time to plan ahead,” Singh said.
The airline, which had an accumulated debt of over Rs 1,200 crore, was deep in the red and on the verge of a shutdown when Singh and a group of PE investors decided to pump in cash and acquire it. This is Singh’s second innings as the promoter of the low-cost airline, which he had once revived in the early 2000s.
The Telegraph – Calcutta | Business – Business
News-Source
via NorthEast Calling http://ift.tt/1LGcX7a
No comments:
Post a Comment