India's SpiceJet Ups Frequency to Colombo at Low Fares of Rs.999 from Chennai

10th October 2010, www.lankabusinessonline.com

Indian budget carrier SpiceJet, which has launched daily flights to Sri Lanka to exploit the island's post-war tourism prospects, intends to increase frequencies and add more destinations soon, officials said.

The airline, India's second largest budget carrier, is offering introductory fares as low 999 Indian rupees one way to the Sri Lankan capital Colombo from Chennai for some early bookings, with meals having to be bought on board.

"We're a 'no-frills' carrier and our fares are affordable," said Samyukth Sridharan, chief commercial officer of SpiceJet.

"Our cost structures are at a level where we can actually make profits by offering those fares."

The response to the airline's introductory fare to Colombo was "very encouraging" with the first flight last Friday being 80 percent full, a load factor they expect to maintain in October, he told a news conference.

"In the next six months we trying to get more flights to Colombo to connect two or three more Indian destinations," Sridharan said.

Sunil Peiris, director of Jetwing Travels, agents for SpiceJet, said the airline hopes to add New Delhi, Mumbai and Bangalore in future.

"We're also looking at starting a flight to Male connecting India and Male through Colombo," Sridharan said.

"It could be either from flights from Bombay or Delhi that goes forward to Male through Colombo. We could carry Indian passengers into Male over Sri Lanka."

Sridharan said the number of Indian tourists to Sri Lanka was growing rapidly following the end of the 30-year ethnic war in May 2009 and that more connecting flights between the two countries was needed.

"There's a lot more interest in travel especially in the last 12 months with stability in both countries and their economies looking up," he said.

"Lots of people would like to explore outside India. They are now going to the Middle East and south east Asia but we feel the south Asian region has far more potential for Indian tourists. That's why we would add more flights to Colombo, Nepal and Male."

Sridharan said SpiceJet has 22 aircraft now, mostly 189-seater Boeing 737-800 aircraft, and that the airline plans to have 45-50 planes in the next two and a half years.

About 20 percent of the seats on every flight are being offered at the introductory price, which is the equivalent of about three thousand Sri Lankan rupees for both ways.

Meals will cost about 250-300 Sri Lankan rupees.

"We like consumers to book early," Sridharan said. "Closer to the flight fares go up. The last few seats are more expensive obviously."