Flyadeal looks to expand India network beyond Mumbai, Hyderabad

Mumbai: Saudi low-cost carrier Flyadeal is considering expanding its India network to cities including Lucknow, Kolkata and Delhi, aiming to tap the growing travel demand between the two countries, even as fuel costs and restrictions on permitted destinations shape the pace of expansion.

The airline, part of the Saudia Group, started flying to Hyderabad in July and added Mumbai to its network on October 3. Both routes operate five times a week from Riyadh, with the Mumbai service adding more than 7,600 seats a month between the two cities.

"We expect to fly to at least half a dozen Indian cities," Flyadeal acting chief executive Sanjiv Kapoor said in an interview with ET. The airline is also looking at cities such as Chennai as it takes delivery of aircraft with greater range. It currently has rights to serve eight Indian cities under the bilateral framework between India and Saudi Arabia, he said.


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Flyadeal's initial operations indicate strong demand. Its first Mumbai-Riyadh flight carried 170 passengers on an aircraft with 186 seats, while load factors on the Hyderabad route are in the high 80% range, Kapoor said.

"The challenge right now with the fuel prices is the fares, the yields," he said. Fuel prices have risen sharply this year, making it harder for airlines to balance fare levels with operating costs. "Loads are strong. The yields will hopefully build up," Kapoor said.