Mumbai: Delhi-based budget carrier SpiceJet will acquire 10 new Boeing
737 airplanes as a part of its fleet expansion programme. It will spend
between $650 million and $700 million for the purpose. The airline
would begin taking delivery of the airplanes from the 2008-end and
complete the same by 2011.
This low-fare airline would have 35 airplanes in its fleet
by the end of 2011. SpiceJet currently operates in 14 cities, including
Mumbai, Delhi, Kolkata, Chennai, Hyderabad and Bangalore, with 10
Boeing 737-800 aircraft.
“Boeing 737 can fly non-stop for five hours to West Asia and
other closer destinations. However, we have no plans to fly overseas at
present. We are not entitled to get rights as we have not yet completed
five years of operations,” said Siddhanta Sharma, managing director and
CEO of SpiceJet, when asked about its overseas foray.
The board of directors of SpiceJet had approved the acquisition proposal, the company informed Bombay Stock Exchange (BSE).
Asked about funding the acquisition, Sharma said, “We can
either buy or opt for sale and lease-back of these airplanes. We will
take a call just before the delivery schedules.” The airline had raised
$70 million in January by selling stock to the Tata group, Goldman
Sachs and BNP Paribas.
SpiceJet has posted a net loss of Rs 21.37 crore for the
quarter ended February 28, 2007, compared with a net profit of Rs 4.30
crore for the corresponding period last year.
Backed by other income, the total income from operations
grew 84 per cent at Rs 277.69 crore for the reporting quarter compared
with Rs 150.74 crore for the quarter ended February 28, 2006.
The scrip of SpiceJet fell marginally on the BSE to Rs 44.55 today against the previous day’s close of Rs 45.
SpiceJet competes with the country’s largest budget carriers such as Air Deccan, GoAir and IndiGo.
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