SPICE­JET TO SET UP JOINT VEN­TURE AIR­LINE IN UAE

SP's Airbuz - - Newsbrief -

In Oc­to­ber this year, Ajay Singh Chair­man and Man­ag­ing Di­rec­tor of Spice­Jet stated that his com­pany will be set­ting up an air­line at Ras Al Khaimah with a lo­cal part­ner and will have a 49 per cent share­hold­ing in the joint ven­ture ( JV). The car­rier, which is the sec­ond-largest in In­dia, inked a mem­o­ran­dum of un­der­stand­ing with Ras Al Khaimah In­ter­na­tional Air­port and will launch its first flight from Delhi to the Emi­rate in De­cem­ber 2019. Ajay Singh stated that the air­line had been eye­ing an in­ter­na­tional hub for some time as In­dia’s air­ports be­come more con­gested and as Spice­Jet pre­pares to ex­pand its air­craft fleet. He be­lieves there is “tremen­dous po­ten­tial” in a part­ner­ship with Ras Al Khaimah, which is still un­tapped.

By De­cem­ber this year, the bud­get car­rier plans to have five air­craft based in Ras Al Khaimah to be de­ployed on medium-haul flights of six to seven hours. This would in­clude des­ti­na­tions in Eastern and Western Europe, as Spice­Jet sees the new hub as its step­ping stone into Euro­pean mar­kets. Spice­Jet has al­ready started freighter op­er­a­tions into Ras Al Khaimah and plans to ex­pand that to cre­ate a lo­gis­tics hub at the air­port. Ad­di­tion­ally, the air­line is look­ing at the po­ten­tial for main­te­nance and over­haul op­er­a­tions out of the UAE air­port. Shaikh Khalid Bin Saud Al Qasimi, Vice-Chair­man of Ras Al Khaimah’s In­vest­ment and De­vel­op­ment Of­fice, said the deal with Spice­Jet is in line with the Emi­rate’s strat­egy to de­velop its air­port. Al Qasimi said the emi­rate is tar­get­ing 2.5 mil­lion tourists in the next five years, up from the cur­rent fig­ure of one mil­lion and sees huge po­ten­tial for growth in the Emi­rate’s avi­a­tion sec­tor.

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