Tuesday, July 21, 2009

Spice Jet India

Spice Jet of India has officially confirmed that it will be flying on short haul international routes from May 23rd 2010 as it will complete the pre-requisite of flying for 5 years before being allowed to operate internationally. It is currently on the look out for used Boeing 737-800s in the leasing market to fuel this expansion as well as 60 seater regional planes such as ATR 72s / Dash 8s etc. It hasnt mentioned though of any intentions of wanting to expand long haul .


Spice Jet should not order new B 737NGs from Boeing as that would be an un-necessary expense. It should rather aggressively snap up used B 738s and B 739ERs that are available in the dry leasing market immediately to use on key India-Middle East routes where there is scope for growth and demand for more flights. After it has established a decent Middle East network, it should look into flying to South East Asia.

I would also recommend Spice Jet to purchase at least at least 8 B 787-800s and use them to launch high density medium haul flights with the aircraft seating 320 passengers in an all economy class configuration. Routes where this aircraft can perform well on are MAA-SIN, MAA-KUL, BOM-RUH, DEL-JED, BOM-JED, DEL-RUH, TRV-DXB, COK-DXB, BOM-DXB, DEL-DXB, HYD-JED and Kerala-JED as along with carrying 300+ pax, it can also carry in its belly 10 tonnes of cargo.

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