SpiceJet to start services to 16 non-metro routes from July

SpiceJet will launch its regional services from July this year, operating on 16 non-metro routes with Chennai as one of its hubs. The airline plans to have at least three bases including one each in the east and the north regions for its operations to smaller cities. SpiceJet will get the first of its 15 Bombardier Q400 (regional jet) in June and will use it to launch the services. By the end of this year, it will have eight of these aircraft in its stable. The rest will join the fleet in 2012, said Neil Mills, CEO SpiceJet.

For its fleet expansion, the airline has already tied up with the US Exim Bank to fund the 15 Bombardier order for which it requires close to $450 million (list price). US Exim bank will pay 85% of the requirement and the rest we will fund through  cash reserves

 The regional routes will either fly passengers between a metro and a non-metro or between two non-metros with cheaper airfares and with significantly low airport charges for non-metro airports. crackcrack