Budget airline to set up international hub in UAE

(23 Oct 2019) LEAD IN:

The Indian low-cost carrier SpiceJet says it plans to open an international hub in the United Arab Emirates, its first hub overseas.

Company officials and the emirate of Ras al-Khaimah made the announcement on Wednesday in the northernmost sheikhdom of the oil-rich UAE, signing an agreement for the expansion.



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Ajay Singh, the founder of SpiceJet, and officials from the Ras Al Khaimah government are meeting to seal a deal setting up the first international hub for India's second largest airline.

The move comes as the budget carrier is trying to expand its connections to the Gulf and as far as western Europe.

"We think that this is a really important development and we have been looking at it for some time. You know, as airports in India become more crowded, we think that SpiceJet needs to look at airports outside of India, starting with its neighbourhood. And in that we found that Ras al-Khaimah was a very welcoming environment," says Singh at a news conference.  

The operation would be based in Ras al-Khaimah, the UAE's northern-most Emirate, and flights between New Delhi and the emirate are expected to begin in December.

SpiceJet plans to base as many as five airplanes in the UAE to then carry passengers onto Europe.

For Ras al-Khaimah, whose small airport pales in comparison to the massive Dubai International Airport - the world's busiest for international travel - it offers an opportunity to attract more tourists to the region.

Previous attempts to reinvigorate the airport have failed to take off.

Ras al-Khaimah International Airport's chief executive, Sanja Khanna, says they are not trying to compete with their bigger counterparts in the region.

"We are complementing. We step back and say we are growing," Khanna says.

During the signing event, Singh offered his support to the embattled aircraft manufacturer Boeing.

The airline, which bet big on the now-grounded 737 Max planes by ordering 200 planes, hopes to use the fleet in the hub.

Singh is optimistic that the airline's recertification will come through by the end of the year.

The 737 Max was involved in two deadly crashes last year that took 346 lives in Ethiopia and Indonesia.

Singh does not rule out future talks with Boeing's biggest competitor, Airbus.

SpiceJet is India's second-largest airline in terms of domestic passenger volume.

It's based near New Delhi and operates a fleet of 111 Boeing and Bombardier aircraft, flying to over 50 destinations in India and a handful of international routes, including Dubai.



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