Despite third-quarter loss, SpiceJet targets 2010 international launch

A INR187 million charge "to settle a long pending dispute with an erstwhile investor" dragged India's SpiceJet to a INR180 million ($3.6 million) loss in the third fiscal quarter ended Dec. 31 (year-ago result not provided), but the carrier remains focused on an international future.

Excluding the charge, the New Delhi-based LCC posted an INR8 million profit. Operating revenue rose 16% year-over-year to INR4.72 billion on a 24% increase in average fare. Unit revenue climbed 11% to INR2.42 and passenger numbers were down 12%.

CEO Sanjay Aggarwal said, "We are optimistic that we will see an upward trend in passenger demand starting this summer. Fortunately, the fuel prices have stayed low to offset the lower demand."

Yesterday he told reporters that the airline plans to start international operations in May 2010 and is considering launching a regional subsidiary to provide feed. According to press reports from India, SpiceJet is limiting its international ambitions to Asia for now. "We are currently evaluating the potential markets. The plan is to utilize the current fleet, which is capable of taking flight operations for destinations in the Asian continent," Aggarwal told The Economic Times.

SpiceJet operates 19 737-800/900ERs on 115 daily flights to 18 destinations. It plans to add five aircraft by March 2011.