New Delhi: Chairman of Spicejet Ajay Singh wants to expand the passenger jet fleet and cargo carrier as a financial performance of airline to India recover after stretches that punish during a pandemic.
Singh said the no-frills carrier had a “reasonable opportunity” to reach a break – even this quarter until December thanks to a combination of cost cutting, rented aircraft rent, uptick in air travel traffic in India and the growth of the new cargo company.
operation.
“We are easily the biggest player in the room in our part of our world,” he said in an interview with an annual international air transportation association meeting in Boston.
“We, like other airlines, make losses in this period but on the other hand we build this asset.” Spicejet posted a loss of Rs 730 Crore ($ 98 million) in the June quarter, who lost analyst estimates of 6.3 billion.
Salary has now been restored for all employees, Singh said, after the company delayed paying for a lot earlier this year, a step that pushed the attack at Delhi airport in September.
Spicejet rose 1% on Tuesday morning in Mumbai.
Stocks fell 20% this year.
Singh said he expected the Spicejet cargo business to reach $ 1 billion in revenue in two to three years from around $ 350 million expected this year.
The business needs to be “at least” 10-15 wide-bodied jets to expand the capacity of the nine fleet, he said, with the first addition to coming next month.
Singh said he wanted to add 30-40 other passenger planes to the Spicejet fleet for the next two years, above the existing order book covering 155 Boeing CO 737 Max aircraft.
The Indian regulator cleared Max to fly again in August after a long runway after a deadly crash in Indonesia and Ethiopia.
Spicejet will begin to fly max more from October 8 and hope to achieve the settlement with Boeing “Immediately” for the costs incurred when the plane is idle, said Singh.
He refused to comment on the specifications of potential compensation agreements with Boeing.
“Spicejet will definitely need capacity because many of our old planes are scheduled to rent back during next year,” he said.
“However, Spicejet’s strategy has always repented to a newer aircraft, more fuel-efficient airplanes, and tried to offer better products to consumers.”