Low-cost airline Spicejet Tuesday said it would launch services to smaller cities and spend $900 million to buy 30 Bombadier aircraft to enhance regional connectivity in the country.
"We believe that the enormous potential in the Indian domestic market can be further tapped by enhancing regional connectivity in the country by focusing on Tier II and Tier III cities," said Neil Mills, chief executive.
According to Mills, the company has selected Q400 NextGen turboprop aircraft from Bombardier Inc., Canada, and the deliveries would start from the second quarter of 2011.
"The SpiceJet board today (Tuesday) approved an order of up to 30 aircraft with deliveries commencing second quarter 2011 and we are in the process of obtaining the necessary regulatory approvals," Mills said.
The company also reported a net profit of Rs.10.1 crore for the second quarter of the current fiscal as against a loss of Rs.101.3 crore in the like period of last year.
"SpiceJet continued to outperform the broad industry with a 16 percent growth in passenger traffic. SpiceJet also improved its market share to 12.8 percent from 12.6 percent during the same period in the previous year," it said in a statement.
"At the end of the quarter, SpiceJet has a positive net worth and over Rs.600 crore cash," Mills added.
During the quarter, the airline started its first two international flights from Delhi-to-Kathmandu and Chennai-to-Colombo.