India's second largest low-cost carrier by passengers flown, SpiceJet Ltd, has applied for permission to fly abroad and hopes to land in one of four neighboring nations it has shortlisted for expansion by July this year.
Analysts, however, say SpiceJet should focus on stabilizing its domestic operations before venturing into the highly competitive foreign market.
SpiceJet is already taking the first steps towards running international flights—including registering with a global distribution system of ticketing and seeking the membership of the International Air Transport Association (IATA), the global lobby for airlines.
"We will have 21 planes when we go international. We are looking at a June-July time frame," said chief executive Sanjay Aggarwal.
Any carrier requires a fleet of at least 20 aircraft before it can be considered for an international license. Aggarwal said SpiceJet would meet the requirement by March. "We are working with the (aviation) ministry and the DGCA (directorate general of civil aviation) to get everything going. That's where we are until we get the approvals," he added.
DGCA is checking SpiceJet's international preparedness, including the capability and maintenance of its aircraft and the training levels of its pilots and engineers, an aviation ministry official said on condition of anonymity.
SpiceJet wants to fly to Sri Lanka, Bangladesh, Nepal and the Maldives in the first phase of its international operations. If approved, SpiceJet will become only the fourth Indian carrier to fly internationally—after National Aviation Co. of India Ltd-run Air India, Jet Airways (India) Ltd and Kingfisher Airlines Ltd.
It has appointed general sales agents in regional countries, including Sri Lanka, to sell its tickets to locals. Aggarwal added: "We are now participating in the Sabre GDS (global distribution system of ticketing), but it is only for point of sale outside India. Our low-cost model sells in domestic market and you have to have a presence there. I think we will be pretty soon on Sabre now." Participating in the GDS makes international carriers more easily noticeable to foreign flyers. But it comes at a price. Ticket sales through the GDS will cost an additional $4 (around Rs182), even though the cost of joining a GDS was not steep. Besides, SpiceJet will also undergo the IATA Operational Safety Audit (Iosa), which assesses the operational management and control systems of an airline and is considered to be a key requirement for entering code-sharing alliances with international carriers. The Iosa audit will also allow SpiceJet to become a member of IATA.
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