SpiceJet surged 8.92% to Rs 17:10 at 10:47 IST on BSE after the company said it has signed a three-year interline agreement with Tigerair, Singapore's largest budget airline.
The announcement was made during trading hours today, 16 December 2013.
Meanwhile, the S&P BSE Sensex was up 19.50 points or 0.09% at 20,735.08.
On BSE, 56.66 lakh shares were traded in the counter as against average daily volume of 36.84 lakh shares in the past one quarter.
The stock hit a high of Rs 17.60 and a low of Rs 15.85 so far during the day.
The stock had underperformed the market over the past one month till 13 December 2013, sliding 12.29% compared with the Sensex's 2.58% rise. The scrip had also underperformed the market in past one quarter, declining 27.65% as against Sensex's 4.98% rise.
SpiceJet and Tigerair have signed a three-year interline agreement to pave the way for greater connectivity between flights operated by both carriers, the budget carriers said in a joint statement. SpiceJet is the first Indian low fare airline to establish such an arrangement with a foreign airline. This partnership will result in a major boost for tourism and business travel between the two countries, SpiceJet and Tigerair said.
Starting from 6 January 2014, customers travelling on SpiceJet's domestic network from 14 Indian cities can enjoy seamless connection through Hyderabad's Rajiv Gandhi International Airport onto Tigerair's Singapore-bound flights. The 14 Indian cities are Ahmedabad, Bhopal, Chennai, Kolkata, Coimbatore, Delhi, Goa, Indore, Mangalore, Madurai, Pune, Bengaluru, Tirupati, and Visakhapatnam (Vizag).
Starting from 12 January 2014, Tigerair customers from Singapore will also enjoy easy access to SpiceJet's wide domestic network, making their holiday and business travel more seamless.
Sanjiv Kapoor, Chief Operating Officer of SpiceJet said: "We are glad to announce the interline partnership that brings two leading low fare Asian carriers together. This is a historic moment for SpiceJet and Tigerair. This partnership will hugely benefit travelers from India and Singapore, and represents one of the building blocks of the emerging new SpiceJet".
Group Chief Commercial Officer of Tigerair Mr Alexander Knigge said: "India is one of our key markets and we are excited to expand our footprint there through this interline partnership with SpiceJet. We look forward to build a win-win partnership and delivering even more travel options to our customers".
Tigerair, established in 2004, is a leading Singapore-based no-frills airline that offers affordable travel options and a seamless customer experience. Tigerair comprises four airlines, namely Tigerair Singapore, Tigerair Mandala, Tigerair Philippines and Tigerair Australia. Collectively, the Group's network extends to over 50 destinations across 13 countries in the Asia Pacific. Tigerair operates a fleet of 50 Airbus A320-family aircraft, averaging less than three years of age.
SpiceJet reported a net loss of Rs 559.49 crore in Q2 September 2013, higher than net loss of Rs 163.52 crore in Q2 September 2012. Net sales rose 6.2% to Rs 1246.08 crore in Q2 September 2013 over Q2 September 2012.
SpiceJet is India's second largest low fare airline, with 20% of market share in Indian domestic market. The airline currently operates more than 360 daily flights to over 55 airports (45 Indian and 10 international destinations).
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