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SpiceJet plans to buy 30 planes for $900 Mn

This article was posted on Nov 3, 2010 and is filed under Market News

Low-cost carrier (LCC) SpiceJet on Tuesday said it would spend $900 million to buy 30 small aircraft from Canada’s Bombardier to enhance regional connectivity in the country. “The SpiceJet board on Tuesday approved an order of up to 30 aircraft, with deliveries commencing from the second quarter of 2011, and we are in the process of obtaining the necessary regulatory approvals” Chief Executive Officer Neil Mills said. He was speaking to reporters here after announcing the company’s second-quarter results.

“India has about 90 airports in tier-II and tier-II cities, and we plan to enter these areas, as there are no LCCs here,” Mills said. Samyukth Sridharan, chief operating officer, said, “As of now, 25 per cent of our operations connect smaller cities and we plan to increase it further with these new aircraft.”

The Q400 NextGen turboprop aircraft from Bombardier can seat 78 passengers and has low noise and vibration-free features. It uses up to 40 per cent less fuel than the regional jet aircraft, according to Sridharan. SpiceJet has also ordered 30 Boeing aircraft and deliveries of the same would begin by 2013, doubling its existing fleet of 22 aircraft.

Talking about the winter schedule, Sridharan said in addition to 153 daily flights, the airline plans to add 16 more flights during November itself.

Sees Rs 10-crore profit
Meanwhile, SpiceJet on Tuesday reported a net profit of Rs 10 crore for the second quarter, compared to a net loss of Rs 101.3 crore in the year-ago period.

The airline reported about 16 per cent growth in passengers and 34 per cent in revenues, which stood at Rs 602.99 crore, compared to Rs 449.15 crore in the same period last year.

SpiceJet’s shares on Tuesday closed 5.95 per cent higher at Rs 88.15 on the Bombay Stock Exchange.

source: Business Standard

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