Indian budget passenger carrier SpiceJet plans to buy over 100 amphibious planes, or ones that can operate on both land and water, at an estimated cost of $400 million as it looks to expand its regional operations.
SpiceJet has entered into a Memorandum of Understanding with Japan’s Setouchi Holdings for purchase of the 14-seater aircraft. The MoU, SpiceJet chief Ajay Singh said, was to evaluate if the amphibian planes “can be used by the airline in a cost-effective manner.”
"If it is done, it will be done in excess of 100 planes," Singh told reporters when asked about the number of planes to be ordered.
Singh informed that one amphibian plane costs around $4 million, translating into a cost within the range of $400 million (about Rs 2,600 crore) for over 100 such planes.
“We are studying the commercial viability. SpiceJet will get involved whatever the structure might be... directly, separately or as part of travel vertical," he said, adding that the interests of states have also to be assessed.
Singh also said SpiceJet would study the possibility of availing low-cost funds from Japan for the purchase of the amphibian planes.
With the ability to land in a small or confined space, smaller fixed-wing aircraft is the perfect flying machine that can effectively connect the country's remote cities and airstrips which can, in turn, revolutionise the regional connectivity scheme, he said.
"Indian market is the most important market in the world... Today we have a partnership with SpiceJet," Setouchi Holdings Executive Managing Director Go Okazaki said.
Speaking on the occasion, Assam Chief Minister Sarbananda Sonowal said SpiceJet's plan would be a big boost for regional connectivity scheme.
The scheme, also known as UDAN (Ude Desh Ka Aam Naagrik), seeks to provide air connectivity to unserved and under-served airports as well as make flying more affordable.
Currently, SpiceJet operates three RCS flights -- Mumbai to Kandla, Mumbai to Porbandar and Hyderabad to Puducherry, with plans to launch such flights from Delhi to Jaisalmer, Kanpur and Adampur as also from Jaipur to Jaisalmer.
SpiceJet does not take Viability Gap Funding (VGF) extended by the government under UDAN that caps fares at Rs 2,500 for one-hour flights.
Latest Business News
