SpiceJet: Discount Airline to Start Turboprop Regional Links

In July, 2011, SpiceJet Ltd, India’s second- biggest discount airline, will start flying turboprop planes that would connect to the country’s smaller cities and towns. SpiceJet will get the permit to operate in more cities of India with turboprop planes as there are several airports with runways that are small enough for the aircraft to fit in. Chief Commercial Officer Samyukth Sridharan said, “The carrier’s purchase of the 15 Bombardier Inc. (BBD/B) Q400 planes will be funded by a loan from state-run Export Development Canada”. SpiceJet turboprop planes cost $450 million.

On the other hand, various airlines in the aviation industry are already feeling threat and by such a big step taken by SpiceJet. In the verge of competition other inexpensive airline like Indigo has made an announcement to purchase 180 Airbus SAS A320 jet planes. In a conference in Hyderabad Neil Raymond Mills, chief executive officer at SpiceJet stated that “The enormous potential in the Indian domestic market can be further tapped by enhancing regional connectivity.” He added,“We see a very robust and latent demand in these under-serviced sectors.”

The city of Hyderabad is chosen as first regional hub for the Q400s, to add to this further SpiceJet has also ordered for 30 Boeing 737s. SpiceJet flights started its low cost carrier services from the year 2005. When spiceJet made its first entry into the aviation industry it started as Royal Airways, which was also known as ModiLuft. The main target of this airline was to offer the benefits at same prices as the AC class passenger of Indian Railways. Initially the airline offered Rs 99 only deal for a total of 9000 seats but as it gained popularity, the seat prices increased to Rs.999.