SpiceJet eyeing cargo biz, readying own infrastructure

NEW DELHI: As part of its diversification plans, low-cost airline SpiceJet is aggressively looking at cargo business and has already started putting in place the necessary infrastructure.

"We are aggressively going behind cargo business. For that we are developing our own infrastructure at various ports, our own x-ray machines and other set up," SpiceJet Executive Chairman Siddhanta Sharma told PTI.

He said SpiceJet has already won the bid for India Post courier contracts along with Jet Airways. The airline has been carrying courier for some time and now wants to augment its revenue from the cargo segment.

"Our aircraft can carry about two tonnes of cargo and we are operating about 120 flights per day, which means we can carry 240 tonnes every day. We are doing 60-70 tonne of courier every day, so we can carry about 180 tonnes more," Sharma said.

For the next fiscal itself, the airline has set a target of three per cent of the total revenues to come from cargo business. However, Sharma ruled out having dedicated cargo planes at the moment.

The airline is also looking at setting up hanger facility for its own use with an investment of about Rs 15 crore. It is hopeful of getting land on lease for the purpose in Delhi to start with.

It has a fleet of 18 aircraft with an average age of about 1.5 years.