Dubai is key to SpiceJet’s global plans

A YEAR AFTER GROUNDING FLEET, CARRIER IS CLOSE TO MAKING A HUGE ORDER

Ayear after grounding its fleet and leaving thousands of passengers stranded because it was unable to pay its bills, Indian budget carrier SpiceJet is on the verge of a huge aircraft order and mapping out plans for its internationally-based hub.

SpiceJet will place an order for 100 single-aisle jets from either Airbus or Boeing and a further 50 smaller regional type aircraft from either Brazil’s Embraer, Canada’s Bombardier or France’s ATR — a joint venture between Airbus and Finmeccanica. The orders will be posted before March 31, 2016, Ajay Singh, Chairman and Managing Director of SpiceJet, said in Dubai last month but also added it could be finalised this month.

Speaking to reporters in Dubai on November 29, Singh also made it clear that he wants his airline carrying passengers from India to Dubai and beyond.

While many airlines already fly through Dubai using fifth freedom rights, which allow carriers to fly between foreign countries so long as the flight starts or end in its own country, Singh wants a permanent base here. This is something no foreign airline has done since Kuwait budget airline Jazeera Airways was asked to leave before government-owned flydubai starting operations 2009.

“This city will be SpiceJet’s home away from home,” Singh said confidently.

But what has changed in the 12 months since December 17, 2014, when Indian stateoil companies were refusing