Date:18/05/2007 URL: http://www.thehindubusinessline.com/2007/05/18/stories/2007051805461400.htm

Back SpiceJet plans raising its fleet size to 25

Our Bureau

Ties up with Tata AIG for travel cover

NEW TIE-UP: (from left) Mr Michael Carlin, Managing Director, Tata AIG General Insurance Co Ltd; Mr Siddhanta Sharma, Chairman, SpiceJet; and Mr Charles S. H. Boulox, President, Middle East, Mediterranean & South Asia, AIG MEMSA, at a press conference in Mumbai on Thursday. — Paul Noronha

Mumbai May 17 SpiceJet, one of India's low fare airlines, is targeting a fleet size of 25 aircraft by end 2008, including leased planes.

The airline plans to add 10 more aircraft between 2009 and 2011. It may require $650 million if it plans to buy the aircraft; if leased, no investment will be required, the SpiceJet Chairman, Mr Siddhanta Sharma, told newspersons here on Thursday.

"Of the total investment, $550 million will be a loan from the US Exim Bank with the rest $100 million raised from the market," he said. Though he ruled out sale of existing stocks, no decision has been taken on whether funds will be raised through a rights issue or preferential shares, Mr Sharma added. A final decision is expected in 2008-09.

Currently, SpiceJet has a leased fleet of 11 aircraft with the fresh acquisitions being Boeing 737-800.

The airline has also tied up with Tata AIG General Insurance Company Ltd to provide travel cover called Domestic TravInsure to its passengers (between 2 and 70 years) at a premium of Rs 129 per person. The insurance will cover trip cancellations, flight delays, baggage loss and more. Speaking to newspersons, Mr Michael Carlin, Managing Director of the insurance company, said, "The scheme has been designed keeping in mind the specific needs and exigencies of domestic passengers and not just from the perspective of an accident cover."

The policy will have 30 days validity from the time the passengers take the flight and covers travel by all modes of transport during this period. In case of an accidental death of the passenger or co-passenger, the person can claim a cover of maximum of Rs 7.5 lakh. Emergency medical reimbursement of Rs 1 lakh can be claimed.