SpiceJet eyes break-even in FY10

Budget air-carrier, SpiceJet, expects to break-even this fiscal, a top company official said. The break-even could come on the back of stabilising fuel prices and an increasing demand for low-fare travel, he said. The air-carrier expects oil prices to stablise in the range of $65-70.

"It (the break-even) will be backed by our business plan, which primarily includes higher utilisation of our capacity," SpiceJet's chief commercial officer, Samyukth Sridharan said.

"We also see fuel prices stabilising this year," Sridharan said, adding, prices are likley to stabilise in the range of $65-70.

Ruling out any hike in its air fare in the wake of a six per cent increase in ATF prices by oil marketing firms, Sridharan said, "if there is a subsequent increase in jet fuel

prices in July, then we might consider it (revising the fares)."
Spice Jet may also commence international operations in 2010 as it would qualify eligible to fly overseas, Sridharan said.

The current government rules stipulate that a domestic airline can begin overseas operations only after completion of five years of domestic operations besides having a 20-strong fleet.

SpiceJet will only consider short-haul flights to countries such the Middle-East, south-east Asia and the SAARC region, he said.