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SpiceJet posts profit, plans to order 100 planes soon

By ABC Aviation Correspondent

New Delhi. India’s second largest no-frills carrier, SpiceJet, which launched a low fare war on domestic and international fronts only a few days ago, has plans to order about 100 single-aisle aircraft over the next two to three months.

Back to its original owner Ajay Singh who rescued the airline from a dismal financial position, SpiceJet’s net profit more than tripled to Rs 73.19 crore in the three months to March as higher income from operations helped the budget carrier afloat profitable for the fifth straight quarter. The carrier had posted net profit of Rs 22.52 crore in the year-ago period.

SpiceJet Chairman and Managing Director Ajay Singh said that by taking the one-time expense, the airline has now “accounted for all legacy issues and are ready to start on a clean slate with even greater confidence”.

“We had inherited a deeply stressed company last year. We are delighted that we have made significant progress both financially and operationally, and have significantly strengthened our balance sheet,” Mr Singh said, adding that the airline had achieved a turnaround which is pretty much without a parallel in the world.

The airline is in talks with both — Boeing and Airbus and hopes to finalise it over the next two to three months, Mr Singh said. SpiceJet has a Boeing 737 fleet but would like to cut a good and economical deal if it goes ahead with the order for more planes. If it does so, it would be following in the footsteps of its competitor IndiGo which had placed large orders for Airbus A-320 planes right from its inception.