|Spice jet is flying high|
The latest Spicejet offer unveiled today has priced one-way tickets at a starting low of AED 244 (approx. Rs 4,438) base fare (statutory taxes applicable). In addition to the offer, Spicejet has announced that it will enhance its connectivity from Dubai to a host of Indian cities by increasing frequencies on multiple routes. The offer is for outgoing direct flights from Dubai to Indian destinations served by SpiceJet.
SpiceJet to order over 150 planes in current fiscal
- The company is in healthy shape. It is generating cash, it’s profitable. If oil prices remain moderate; this profitability should continue in the coming quarters.
- The airline is generating enough money internally. It also has unused credit lines that could be utilised to pay for the aircraft.
- SpiceJet has no need to dilute equity to pay for the purchase of the planes.
- This isn’t the right time to sell a stake as the shares remain undervalued
- Some of the Gulf airlines have started expressing an interest in SpiceJet.
- There is some dialogue with them and to explore other types of relationships.
- Both Airbus A320 Neo and Boeing 737 Max being considered. The order would be with a single manufacturer to buy more than 150 planes
- Manufacturer to be decided by March 2016.
- Company intends to more than quadruple the carrier’s fleet from 41 aircraft at present.
- SpiceJet also has “regional aircraft business” servicing India’s smaller cities through a fleet of 14 Bombardier planes.
- The airline is in talks with Toronto-listed Bombardier, France’s ATR – a joint venture between Airbus and Finmeccanica – and Brazil’s Embraer to potentially buy a further 50 planes to service this sector.
Spicejet share price is currently being traded at Rs 65.50- a big leap since last year. It is world’s best performing Airline stock. An incredible 320% increase in share value in a year.
It could jump another 300%, analysts feel, when partners from the Gulf start investing in Spicejet. (See Spicejet is world’s best)