Thursday 20 September 2012

SpiceJet looks at exotic foreign destinations

NEW DELHI: Young Indian low-cost carriers (LCC) are eager to spread their wings to territories left unchartered by their older full service counterparts. The country's second biggest LCC SpiceJet has sought government nod to fly to 10 new destinations, majority of which are in the former Soviet Union and China. These include places like former Kazakh capital Almaty, Uzbek capital Tashkent and Chinese special administered region (SAR) Macau.

The airline will launch flights to other Chinese SAR Hong Kong next month along with Guangzhou, according to airline CEO Neil Mills. It already flies to Kabul, along with tourism-cum-trade centres of Colombo, Dubai and Kathmandu. The airline will bring Male, Riyadh and Dhaka on its network soon.

"We follow a blue ocean strategy for international flights which means flying to places where not too many airlines go. We would like to go to more points in China," Mills said. At present, no desi carrier flies to the former Soviet republics, while their airlines have started flying to India. Similarly, Guangzhou and Macau are not on the network of any other Indian carrier.
Erstwhile Indian Airlines had planned to fly to Guangzhou some years back but that did not happen as it was merged with Air India and foreign destinations were then left to be served by the merged carrier. Jet cancelled its Mumbai-Shanghai-San Francisco flight in 2008 due to a combination of poor loads amid a global economic meltdown. Indian carriers have since then stuck to big hubs with the exception of Jet flying to Brussels, its base in Europe. India's biggest LCC IndiGo currently flies to Bangkok, Dubai, Muscat, and Kathmandu. It has sought permission to add Kuala Lumpur and Sharjah to the network from next year.

Travel industry insiders say there is a rising interest in travel to places like former Russian republics and China for both trade and tourism. Airlines from these regions had been quick to cash in on the rising travel to and from India while our airlines have not showed any interest so far. SpiceJet's strategy to fly to places that do not have intense competition could pay off as there is demand on these routes that could lead to rewarding fares.

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