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NRI
consortium will run ModiLuft Air line under
new name of SpiceJet
New Delhi, Feb. 7, 2005:
ModiLuft, Royal Airways announced the launch of its
low-cost, no-frills airline under New Mame called SpiceJet
and said that it will be competitively priced vis-a-vis
the existing fares of low-cost airlines in India. It
will be a low fare rival to the Hyderabad-based Air
Deccan
The airline SpiceJet will start its service with five
Boeing 747-400 aircraft in the first phase. It plans
to start services in the busy and lucrative Delhi-Mumbai
sector, Delhi-Bangalore, Delhi-Chennai and Delhi-Kolkata
sectors. Besides, it will operate services in the non-metro
sectors as well.
Royal Airline, which was once owned by the Modi group,
is now run by an NRI consortium. The new owners were
locked in a fight with the Modis for the control of
the airline for several years. The tussle delayed the
relaunch of the airline and changed its focus from a
full-service carrier to that of a fare warrior.
Senior executives with Royal Airways said they were still
finalising the fare. SpiceJet plans to start services
from early this summer.
It is expected follow a dynamic pricing model for its
flights. As per this model, the fare on a particular flight
is determined on the basis of the demand and availability
of seats.
“Using the latest technology is the only way we can
ensure that we provide attractive pricing without compromising
on quality. Driving a low-cost structure, boosting productivity
and delivering value will be our focus,” said Mark
Winders, chief executive officer, SpiceJet.
Aviation experts are of the view that with more low-cost
carriers starting operations in key sectors, airfares
are expected to fall from the present levels. Following
the entry of Air Deccan, the airfare in sectors like Delhi-Mumbai
has come down to as low as Rs 700.
At least 10 new such airlines starting operations in the
next 18 to 24 months.
Mr. Mark Winders, CEO, stressed on the airlines
plan to use the latest in established and proven airline
systems and a modern fleet. "Using the latest technology
is the only way you can ensure we can provide attractive
pricing without compromising on quality". "Driving
a low cost structure, boosting productivity and delivering
value will be our focus", he added.
Mr. Jason Bitter, COO, emphasized on developing a high
level of human skills and modern training methods. "Our
culture will encourage cost saving, teamwork and friendly
service"'. He also went on to say that the management
process and information technology would ensure the
highest standards in operating efficiency and flight
safety.
Royal Airways is the only listed Airline Company in
India and is now ready to induct a modern fleet to launch
its operations in India.
Royal Airways is the reincarnation of Modiluft, which
was among the first private companies that stepped into
the Indian aviation sector. It was the market leader
until 1996, when it ceased its operations.
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