Budget airline SpiceJet has come up with a novel plan to overcome the lack of occupancy in the lean monsoon period. It is leasing out two of its Boeing aircrafts to a Saudi Arabia-headquartered budget airline Nas Air.
SpiceJet has 35 Boeing 737-800/900 in its fleet and is leasing excess capacity on the 737-800 aircraft type.
"It's a business decision (to lease aircraft) and has been taken with the approval of the board. Airlines across the world lease out aircraft in this manner. It's not that we will be pulling this capacity out from the market, but we will be redeploying our fleet based on the loads," said SpiceJet CEO Neil Mills.
SpiceJet surprised the market on Monday announcing a 56-crore profit for the first quarter of the current financial year, especially at a time when most airlines are struggling to keep their nose up as per a report in the ET.
The airline is targeting about $4-5 million in revenues through the wet lease agreement it has entered into with the Saudi carrier for Haj operations. A wet lease is a short-term lease mechanism where cost of operating the aircraft and maintenance is borne by the airline leasing the aircraft.
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