Spice Jet to revolutionise long-haul market; for Rs 15000, one can fly from Delhi to London

Spice Jet's Chairman and Managing Director Ajay Singh while talking to a leading national news daily mentioned that the time is ripe to revolutionise long-haul air travel market in India.

These are the key takeaways from the discussion-

1. Increase the number of seats across all economy cabins and fly to airports with lower landing charges 
2. Unbundle amenities like meals, wi-fi, priority seating and boarding and b4. Bargain harder on leasing cost for aircraft.

Spice-Jet is planning to start a direct Delhi-London flight at a to-and-fro fare of Rs 30,000. Ajay Singh believes the demand for the tickets will be significantly higher when the ticket prices will be lowered to Rs 30000. Current pricing in the market for Delhi to London ticket is Rs 45,000.

Spice-Jet is working on bringing down the cost of operations in order to enable low ticket prices, while contemplating a single class all economy cabin, with less leg space.

In the meantime, the aviation stocks on the Indian bourses have been slipping in trade after the rise in crude oil prices.

The crude oil prices have been moving northwards as the OPEC members have cut the oil supply and have signaled to deepen the supply cut to boost the prices. The rise in crude oil is not beneficial to the aviation companies.

InterGlobe Aviation Limited was trading down by around 2.5% at Rs 1039 per share; SpiceJet Limited was down by around 5% at Rs 103.9 per share; Jet Airways (India) Limited was down by around 4.5% at Rs 496.7 per share as of 1252 hours on BSE.