Spicejet Puts Long-haul International Flights Plan On Hold

SpiceJet Ltd has temporarily halted plans to start long-haul budget international flights as a falling rupee and high fuel prices have swelled operating costs. India’s second-largest low-cost airline will wait for costs to moderate before it starts the service, which will aim to offer fares at much cheaper rates than those of foreign carriers, SpiceJet chairman Ajay Singh said in an interview.

“We expect to fly to many more countries in the future. (But) we will do long-haul international destinations only when it is commercially feasible,” Singh said. SpiceJet would wait for “a somewhat improved environment in terms of ATF (aviation turbine fuel) and taxation”.

“This (long-haul service) will eventually happen,” he added. Singh said SpiceJet will also have to factor in costs in buying wide-body planes, which consume more fuel, as well as airport landing and parking charges among others. Read More

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