Friday, March 04, 2005
SpiceJet to fly to India's smaller cities
India's Royal Airways Ltd, which will start its low-fare SpiceJet carrier in May after being grounded for more than eight years, will seek to tap people wanting to fly in the country's smaller cities.
'There is an opportunity to stimulate new travel because of under capacity' in services to small cities, Jason Bitter, chief operating officer, said in an interview with Bloomberg Television. 'There are lots of opportunities for routes in India that are really underserved.'
SpiceJet will seek to sidestep competition from new and existing airlines that fly mostly to the biggest cities of Mumbai, New Delhi, Bangalore, Chennai and Kolkata.
The country's carriers are targeting the growing number of travellers wanting to fly in India, where economic expansion is putting more money in the hands of people. They have cut fares by more than half in the past two years to win rail passengers.
The fastest economic growth in the country in the past 15 years last year is prompting the start of new airlines and the revival of old carriers.
Deccan Aviation Pvt's Air Deccan, India's only low-cost carrier, began flights in September 2003. Beermaker UB Group's planned Kingfisher Airlines starts in May, while discount carrier Go Air will begin operating in September. East West Travel & Trade Links Ltd also aims to restart flights after seven years.
SpiceJet expects to get two of its three leased Boeing Co 737-800 planes, which can seat 189 people in all-economy configuration, in April.
The airline is seeking to tap cities with a population of three million to five million people, Mr Bitter said. Large cities such as Mumbai and New Delhi have populations in excess of 10 million in the world's second-most populous nation, which has more than a billion people.
India's domestic air traffic rose 12 per cent in the year ended March 31, 2003, to a record 14.8 million passengers, according to the government.
The New Delhi-based Centre for Asia-Pacific Aviation estimates India's air traffic will rise by five million passengers annually for the next 10 years and the aviation ministry expects domestic traffic to grow 20 per cent each year for the next five years.
- posted by katongking @ 1:33 pm
India's Royal Airways Ltd, which will start its low-fare SpiceJet carrier in May after being grounded for more than eight years, will seek to tap people wanting to fly in the country's smaller cities.
'There is an opportunity to stimulate new travel because of under capacity' in services to small cities, Jason Bitter, chief operating officer, said in an interview with Bloomberg Television. 'There are lots of opportunities for routes in India that are really underserved.'
SpiceJet will seek to sidestep competition from new and existing airlines that fly mostly to the biggest cities of Mumbai, New Delhi, Bangalore, Chennai and Kolkata.
The country's carriers are targeting the growing number of travellers wanting to fly in India, where economic expansion is putting more money in the hands of people. They have cut fares by more than half in the past two years to win rail passengers.
The fastest economic growth in the country in the past 15 years last year is prompting the start of new airlines and the revival of old carriers.
Deccan Aviation Pvt's Air Deccan, India's only low-cost carrier, began flights in September 2003. Beermaker UB Group's planned Kingfisher Airlines starts in May, while discount carrier Go Air will begin operating in September. East West Travel & Trade Links Ltd also aims to restart flights after seven years.
SpiceJet expects to get two of its three leased Boeing Co 737-800 planes, which can seat 189 people in all-economy configuration, in April.
The airline is seeking to tap cities with a population of three million to five million people, Mr Bitter said. Large cities such as Mumbai and New Delhi have populations in excess of 10 million in the world's second-most populous nation, which has more than a billion people.
India's domestic air traffic rose 12 per cent in the year ended March 31, 2003, to a record 14.8 million passengers, according to the government.
The New Delhi-based Centre for Asia-Pacific Aviation estimates India's air traffic will rise by five million passengers annually for the next 10 years and the aviation ministry expects domestic traffic to grow 20 per cent each year for the next five years.
- posted by katongking @ 1:33 pm
