SpiceJet to take off from May 23

Fares for the Delhi-Mumbai route will range from Rs 1,699 to Rs 4,899 and the Delhi-Goa flights, scheduled to begin from May 27, would be priced from Rs 2,399 to Rs 6,799. Operations to Pune and Bangalore are slated to start from June 13.

The fares take aim at competitors like Jet Airways and Air Sahara. ‘‘Our most expensive fare will still be 60 per cent cheaper than the economy fares of other airlines,’’ SpiceJet Chairman Siddhanta Sharma said. The pricing will help the airline enjoy a load factor of 80 per cent in the first year of operations, he said.

Though it expects the the bulk of travellers from the metros and secondary areas, the airline is also looking at the ‘affinity factor between cities’. ‘‘Many people have their friends and families in another city, so stimulation would be from such cities,’’ said Winders.

The airline will presently operate on two 189-seater leased Boeing 737-800 aircraft. It will lease another plane in the first week of June and add another three by the year-end. Staring January 2006, it plans to take delivery of new B737-800s, with plans to ramp up the fleet to 20.

SpiceJet has begun operations with $25 million as start-up investment. The $90 million the company hopes to raise in June through convertible bonds will be invested in the airline’s operations, said Ajay Singh, Director, SpiceJet.

While Royal Holdings Service Ltd are the main promoters with a 60 per cent stake, investors like Citibank and ABN Amro hold 20 per cent in the company. The remaining 20 per cent is with the public.