SpiceJet shares surge more than 8% on launch of new international flights

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Published: April 15, 2019 3:30:16 PM

Budget-carrier SpiceJet shares surged more than 8% after the airline announced its plans for international flights.

SpiceJet shares surged more than 8% on the announcement of new international flights

In the middle of Jet Airways crisis, shares of rival SpiceJet jumped on Monday after the company announced it would launch a slew of new international flights to Hong Kong, Jeddah, Dubai, Colombo, Dhaka, Riyadh, Bangkok and Kathmandu from Mumbai. The new flights will start operating by May-end.

Budget-carrier SpiceJet shares surged more than 8% after the airline announced its plans for international flights. At 3:21 PM, the airline’s shares were trading at Rs 118.90, 8.19% from the previous close.

According to the company’s statement, SpiceJet will be the first and only Indian budget carrier to launch daily direct flights on the Mumbai-Colombo, Mumbai-Dhaka, Mumbai-Riyadh, Mumbai-Hong Kong and Mumbai-Kathmandu sectors. The airline will be deploying its Boeing 737 NG aircraft on the new routes.

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On Friday, the airline had said it would lease 16 Boeing 737-800 NG aircraft and had applied to the  Directorate General of Civil Aviation (DGCA) for a no objection certificate or NOC to import the aircraft. The new aircraft would bring joining its fleet in the next ten days.

Last week, the airline had announced six new domestic flights connecting Mumbai with Kolkata, Chennai and Varanasi which will start operations from April 18, 2019. The international flight to Bangkok will commence from May 17.

“India’s financial capital, Mumbai, is a key destination on SpiceJet’s network and the airline aims to further scale up its international and domestic connectivity from the city. SpiceJet already connects Mumbai with a non-stop flight to Dubai and recently announced a new daily direct flight to Bangkok. The airline aims to enhance its operations between Mumbai and Dubai with two additional frequencies,” the airline said in a statement.

Riyadh and Kathmandu are two upcoming international destinations of SpiceJet while the airline already operates flights to Colombo from Chennai and Madurai, Dhaka from Kolkata, Dubai from Delhi, Mumbai, Ahmedabad, Pune, Kochi, Kozhikode, Mangalore, Amritsar, Jaipur and Madurai, Hong Kong from Delhi and Jeddah from Hyderabad besides an upcoming flight from Kozhikode.

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