NEW DELHI: SpiceJet, the low-cost carrier partly owned by media baron Kalanithi Maran, will spend $900 million on buying as many as 30 Bombardier aircraft to enhance regional connectivity in the country.
"We believe that the enormous potential in the Indian domestic market can be further tapped by enhancing regional connectivity in the country by focusing on Tier II and Tier III cities," said Neil Mills, who took over as chief executive officer last month. The decision would enhance an aggressive addition to SpiceJet fleet to double it from the current 22 aircraft by end-2013.
According to Mills, the 2004-founded company has selected Q400 NextGen turboprop aircraft from Bombardier Inc, Canada, and the deliveries would start from the second quarter of 2011.
"The SpiceJet board today approved an order of up to 30 aircraft with deliveries commencing second quarter 2011 and we are in the process of obtaining the necessary regulatory approvals," Mills said.
The Q400 turboprop planes are to be delivered from the second quarter of next year, and will help the Delhi-based airline add flights to smaller destinations.
"At the end of the quarter, SpiceJet has a positive net worth and over `600-crore cash," Mills said.
During the quarter, the airline, a reincarnation of ModiLuft, started its first two international flights — from Delhi to Kathmandu and Chennai to Colombo.
News From: http://www.7StarNews.com
Tuesday, November 2, 2010
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