SpiceJet mulls regional hub and spoke model

Amidst the current turbulent times, low cost carrier SpiceJet is trying to experiment within its airline business. After expanding number of flights across the country, the airline company is now mulling about a regional hub and spoke business model within several states.

"Although we have not planned anything or worked on the possible financials, we are thinking about a hub and spoke model within states that have better inter city infrastructure in terms of flight connectivity," said Sanjay Aggarwal, chief executive officer of SpiceJet Limited. The company is also mulling about possible small seater planes like Embraer for such businesses.

As of now, SpiceJet is expanding its network to offer 117 flights in 18 destinations within next three weeks. "We will be adding 19th airplane to our current fleet and will offer in all 117 flights in 18 destinations in the next coming three weeks," he added.

The company is also in talks with MROs based in India to reduce its operation costs. "By utilising the services of MROs in India, we can cut our costs by nearly 50 per cent. Currently, we service our airplanes from MROs outside the country," said Aggarwal.

When asked about layoffs in the industry, Aggarwal said that the company is instead hiring more people. While SpiceJet employs around 2,300 employees, the airline will be adding 50-odd people including pilots and ground handling staff.

Recently, the airline launched new flights from Ahmedabad to Mumbai and Kolkata and will be adding new routes like Jaipur, Goa and Chennai from December 18, 2008.