SpiceJet Negotiates Deals On Huge Aircraft Orders

Friday, 16th October 2015 at 03:40am

SpiceJet chairman Ajay Singh said that negotiations are still underway with aircraft manufacturers for a supply of aircrafts for the fiscal year.

The chairman was not ready to spare enough details but gave hints that the volume of orders would largely be dictated by the attractiveness of the offer.

Mr. Singh said that negotiations are still on-going but he hopes to close a deal this fiscal year. He added that the number of aircraft involved can be substantial however, the exact number will be decided upon if his team and that of the manufacturers agree on mutually beneficial terms.

The airline hasn't finalised which type of aircraft it will be ordering but it is inclined to opt for smaller types.

The chairman disclosed that the airline will be inducting a number of aircrafts within the month. He said that about six aircrafts will be inducted and that he is quite positive about this decision.

SpiceJet currently maintains and operates mostly 737s and Q400s purchased from Boeing and Bombardier respectively. Total fleet count is around 35.

While attending a conference sponsored by Boeing, he expressed some concerns of local air carriers during a separate interview. He said that trimming down costs has been an issue among industry players in India.

He said that there are many ways to trim it down further and this may be in the form of tax reforms as well as cuts in airport and fuel costs.

If these favourable conditions are present, local airlines would most likely lower air fares. Eventually, these cuts will benefit local passengers who are known to be averse to costly air fares.

Statistics reveal that a local passenger travels by air about three times per year while annual total passenger traffic has already reached 70 million.

Mr. Singh said that the Indian market can be really huge, considering these statistics and the fact that the country's populace is somewhere in the 1.2 billion mark.

By purchasing more than 58 per cent of the company's stock, Mr. Singh a former SpiceJet founder, returned to the airline late last year, vowing to bring it back to its glory days.

By: Pete Lee.