SpiceJet rules out fare hike

Budget air carrier SpiceJet expects to break even this fiscal on the back of stabilising fuel prices and an increasing demand for low-fare travel, a senior official of the airline said.

The air carrier expects oil prices to stabilise in the range of USD 65- USD 70. "It (the break-even) will be backed by our business plan, which primarily includes higher utilisation of our capacity," SpiceJet Chief Commercial Officer Samyukth Sridharan told reporters on the sidelines of an aviation meet in Mumbai on Wednesday.

"We also see fuel prices stabilising this year," Sridharan said, adding that prices are likley to stabilise in the range of USD 65- USD 70.

Ruling out any hike in its air fare in the wake of a six per cent increase in ATF prices by oil marketing firms, Sridharan said, "If there is a subsequent increase in jet fuel prices in July, then we might consider it (revising the fares)."

SpiceJet may also commence international operations in 2010 as it would qualify eligible to fly overseas, Sridharan said.

The current government rules stipulate that a domestic airline can begin overseas operations only after completion of five years of domestic operations besides having a 20-strong fleet.

SpiceJet will only consider short-haul flights to countries such the Middle-East, south-east Asia and the SAARC region, he said.