SpiceJet plans acquisition

SPICE JET CEO Sanjay Aggarwal

SPICE JET CEO Sanjay Aggarwal

Hyderabad: Low-cost airline SpiceJet will plan to acquire another airline company after a year, according to its CEO Sanjay Aggarwal.
Mr. Aggarwal said consolidation in the airline industry would certainly happen after 12-18 months. “If and when it happens, SpiceJet would be rather a buyer than a seller,” he said.
The company registered 12.5 per cent growth in February, against less than eight per cent in September last. Low-cost carriers had a growth potential of 1.5 times of gross domestic product (GDP) growth rate.
Mr. Aggarwal said the company commenced a detailed analysis of the potential in connecting Tier-II cities and acquiring smaller aircraft for the purpose. It was also extending its services on international routes for which the company would become eligible from May 2010.

Explaining that the smaller aircraft might have 40, 70 or 100 seats, Mr. Aggarwal said 1.3-lakh passengers were being carried by all airlines in the country every day. He said there was a potential for growth, as at least 8-10 per cent of the 15 million train passengers could be attracted to use airlines.He said the company was trying to become more passenger-friendly by addressing the needs of travellers. At present, the company was operating 115 flights with 19 aircraft. Two more flights to Ahmedabad and Bangalore were being introduced from Hyderabad.


~ by anand213 on April 1, 2009.

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