SpiceJet seeks hub in Dubai for international flights
 

Dubai: Indian low cost carrier SpiceJet wants to set up hub operations in Dubai and is planning to ask the emirate’s government permission to do so “sooner rather than later.”

Ajay Singh, Chairman and Managing Director, told Gulf News in Dubai on Sunday that the carrier wants to permanently base aircraft here to carry passengers from India to Dubai and beyond.

Establishing hub operations in Dubai will likely place it in direct competition with government-owned airlines Emirates and flydubai on non-Indian routes. But Singh is bullish on his chances of receiving local approval.

“I think Dubai is incredibly focused in what makes commercial sense and as long as this makes commercial sense [we can get permission],” he said.

Singh earmarked Al Maktoum International at Dubai World Central (DWC), Dubai’s developing mega hub airport, as SpiceJet’s future possible “home away from home.”

“They have a fantastic new airport coming up with a lot capacity and I think they will see if they allow this to happen there will be much better utilisation of that capacity,” he said.

Dubai International, the emirates main airport where SpiceJet flies to eight times a day from India, is already heavily congested, making it an unlikely option. So plans to attract traffic to the new airport could be seen as a win-win for the Indian airline and Dubai government.

Singh did not say when the airline will formally seek permission other than it will be “sooner rather than later.”

In March 2014, Emirates airline President Tim Clark said Indian airlines were flagging the idea of setting up hub operations at DWC.

In the short term, SpiceJet is planning to add more flights to Dubai from India, increasing to as many as 15 daily services, Singh said earlier at a press conference.

New routes

SpiceJet recently launched flights from Kozhikode and Amritsar and is now looking at Hyderabad and Jaipur.

“We want to build this city (Dubai) into our main international hub going,” Singh said.

Plans to develop a permanent hub in Dubai will start with increasing flights to 15 a day before partnering with other airlines to carry passengers to other points.

Singh said after that the airline will look to to start its own flights from Dubai to non-Indian destinations.

Singh is a SpiceJet co-founder who retook control of the airline last December after management suspended services 
amid worsening losses. He has since overseen three consecutive quarters of net profit and touted plans to order more than 150 new aircraft by March 31, 2016.

The airline is in talks with Boeing and Airbus for an order of over 100 new generation single aisle aircraft worth $11 billion at list prices. It is interested in the Boeing 737MAX and the Airbus A320neo (new engine option). It is also talking to Bombardier, ATR and Embraer for an order of around 50 smaller sized, regional jet-type aircraft.

Singh said SpiceJet is now generating enough cash to support the huge aircraft order but also has access to unused credit lines. He said the airline has halved its debt by 50 per cent since last December.

“We are very comfortable with where we are,” he said.

SpiceJet seeks hub in Dubai for international flights | GulfNews.com

why is he thinking of making Dubai a hub?he should be thinking of making India a hub.he has got 1.3 billion potential passengers in India.

Because Indian Civil aviation department is not letting him do it.

or maybe he wants to fill up his tanks for cheap from there ?

Don't forget the 737 has limited range . So when flying from a hub in India there is a limit to the international destinations that one can fly .

With a hub in Dubai you can fly to more destinations like Europe , Northern Africa etc

FlyDubai's destination list can give you an idea of whats possible with a hub in Dubai and a 737 fleet

Isn't there some ICAO rule which prohibits the airline of one country from setting up a base in some other country? I thought all airlines had to use their own country as base. Unless of course they start a new airline in the new place?

It is highly doubtful the UAE GCAA will approve this. Fly Dubai has far too many interests at stake to allow an Indian carrier to directly compete with them. It is certain this will be slow rolled or blocked all together.

On a boring afternoon curiosity dragged me to the EK profile link on their company site. Yes, that boring.

The overriding message was a belief in open markets and free competition.

Indeed, words never equate to action. However, SpiceJet is not even close to any significant competition FZ or EK perceive as a genuine threat to their ambitions.

Regulatory approval would be the least of SpiceJets problems. Their gross incompetence and ineptitude would be more significant barriers in establishing and sustaining an overseas base. :E:E

And dont you love the current Spicejet fleet of mix matches, 737/A319 aircraft all in the paint of other airlines, with Spicejet stickers... looks like a airline trying to hang on rather than the success they pretend to be.