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Budget airlines SpiceJet Ltd and Tigerair of Singapore have entered into a three-year interline agreement to offer seamless connectivity between flights operated by the two.
The alliance allows the two carriers to seamlessly transfer their passengers between India and Singapore through the Hyderabad airport.
Passengers from SpiceJet’s network across 14 Indian cities can take Tigerair’s Singapore-bound flights at Hyderabad’s Rajiv Gandhi International Airport.
While the Indian part of the alliance takes off on January 6, 2014, Tigerair customers from Singapore can access SpiceJet’s network from January 12.
As part of the introductory promotional fare, a flight to Singapore is available at Rs 4,699 onwards, while a return trip works out to Rs 9,998 onwards, all inclusive.
The partnership will result in a major boost for tourism and business travel between the two countries, the airlines said at a press conference here on Monday.
“This brings two leading low-fare Asian carriers together. The partnership will hugely benefit travellers from India and Singapore, and represents one of the building blocks of the emerging new SpiceJet,” said SpiceJet COO Sanjiv Kapoor.
Tigerair Group Chief Commercial Officer Alexander Knigge said: “India is one of our key markets and we are excited to expand our footprint there through this interline partnership with SpiceJet. We look forward to build a win-win partnership and delivering even more travel options to our customers.”
GMR-operated Rajiv Gandhi International Airport will be the first in India to facilitate the connecting flights between SpiceJet and Tigerair.
Bain & Co appointed SpiceJet is in the process of restructuring its operations, rationalising some routes and strengthening some others.
The restructure process, now under way, focuses on several building blocks that include network optimisation and strengthening the balance sheet, Kapoor said.
“The company had enlisted the services of consultants Bain & Co for the restructure process. The report, jointly prepared by SpiceJet and Bain, will be ready by January 2014. We will start implementing its suggestions from February onwards and make it fully operational by next summer,” he said.
Asked about talks to bring in a strategic partner, Kapoor said the company is in discussions with a couple of players.
“The focus of the company is now on improving performance and strengthening its financial health. The operational aspects have already improved and have begun to yield results and the financial turnaround will take about a year,” he said.
SpiceJet shares spurted 7.64 per cent to close at Rs 16.90 on the BSE on Monday.
>rishikumar.vundi@thehindu.co.in
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