SpiceJet plans to buy over 100 amphibian planes

SpiceJet plans to purchase more than 100 amphibian planes, estimated to cost USD 400 million, as the no-frills airline looks to boost regional operations, its chief Ajay Singh said today.
With regard to purchase of the up to 14-seater amphibian aircraft, that can operate on land as well as on water bodies, SpiceJet has entered into a Memorandum of Understanding (MoU) with Japan's Setouchi Holdings.
Announcing its plans to enhance regional operations, Singh said the MoU is to explore whether the amphibian planes can be used by the airline in a cost effective manner.
"If it is done, it will be done in excess of 100 planes," he said in response to a query on how many amphibian aircraft would be ordered.

Noting that these aircraft are not expensive, he said one amphibian plane costs around USD 4 million. This would translate to a total amount of more than USD 400 million (about Rs 2,600 crore) for over 100 such planes.
"We are studying the commercial viability (of this project). SpiceJet will get involved whatever the structure might be... directly, separately or as part of travel vertical," the airline's Chairman and Managing Director said, adding that the interests of states have also to be assessed.

He was responding to queries about the structure that would be in place to operate amphibian planes.

Speaking to reporters here, Singh said if things move ahead, then the project would be done in one year.
Quest Aircraft Company, LLC -- part of Japan's diversified Tsuneishi Group -- is a manufacturer of the amphibian planes. The company is owned by Setouchi Holdings, part of Tsuneishi Group.
Quest Aircraft also manufactures Kodiak 100 aircraft can carry up to eight passengers, depending on the configuration. It can take off and land on a short runway as well as handle uneven terrain and mountainous areas, according to the Japanese group.
So far this year, the airline has announced plans to order 275 planes for about USD 26 billion.

To a question on whether SpiceJet would look at low cost funds from Japan for purchase of the amphibian planes, Singh said it would study that possibility.
With the ability to land in a small or confined space, smaller fixed-wing aircraft are the perfect flying machines that can effectively connect the country's remote cities and air strips which can in turn revolutionise the regional connectivity scheme, he said.
"Indian market is the most important market in the world... Today we have a partnership with SpiceJet," Setouchi Holdings Executive Managing Director Go Okazaki said.
Speaking on the occasion, Assam Chief Minister Sarbananda Sonowal said SpiceJet's plan would be a big boost for regional connectivity scheme.

The scheme, also known as UDAN (Ude Desh Ka Aam Naagrik), seeks to provide air connectivity to unserved and under-served airports as well as make flying more affordable.
Currently, SpiceJet operates three RCS flights -- Mumbai to Kandla, Mumbai to Porbandar and Hyderabad to Puducherry.
The airline has plans to launch such flights from Delhi to Jaisalmer, Kanpur and Adampur as also from Jaipur to Jaisalmer.
SpiceJet does not take Viability Gap Funding (VGF) extended by the government under UDAN.
Under the scheme, fares are capped at Rs 2,500 for one- hour flights and the participating airlines are provided VGF.

Embarking on an ambitious expansion path, SpiceJet has announced this year plans to order 225 planes from Boeing and another up to 50 aircraft from Bombardier.
The budget airline operates an average of 384 daily flights, with a fleet of 35 Boeing 737NG and 20 Bombardier Q- 400 planes.