India’s low-cost airline SpiceJet has announced plans to set up its first international hub at Ras Al Khaimah International Airport and launch a new carrier that will be based in the UAE emirate. The emirate would be SpiceJet’s first international hub as the carrier looks to boost its connectivity to the Gulf as well as to European destinations.
The opening of a hub outside the country is not new for Indian airline. Air India used to hub some flights out of Frankfurt circa 2013. Jet Airways used to operate a scissor hub in Brussels for about a decade, before moving it to Amsterdam in 2016.
SpiceJet Chairman and Managing Director Ajay Singh said at a press conference in Ras Al Khaimah that the carrier is looking to make the emirate its stepping stone into Europe, and has been mulling an international hub as India’s airports become more congested
Ras Al Khaimah is the northernmost emirate of the United Arab Emirates (UAE).
The airline said it sees “tremendous potential” in the emirate, and will start basing aircraft in the emirate in December 2019.
SpiceJet signed a Memorandum of Understanding (MoU) with the RAK International Airport to start direct flights between RAK and New Delhi from December. It will operate five flights a week and aims to gradually increase the frequency.
Singh said they have applied for a licence for setting up a new airline which will operate from Ras Al Khaimah and is slated to take off next year.
“We are looking to establish an airline locally based in Ras Al Khaimah. We are applying for certification shortly and the approval will take around three to six months. The new airline will help connect India with Eastern and Western European destination using RAK as hub,” Singh said.
SpiceJet will be the sixth airline to operate from the UAE after Emirates, Etihad, Air Arabia, flydubai and the recently-announced Air Arabia Abu Dhabi.
He said that around four to five jets will be based in Ras Al Khaimah and those will be 737 MAX series after they have been certified by the US regulator.
Singh noted that airports in India are getting congested and with new aircraft coming for SpiceJet, the carrier is forced to look at alternatives in the region. “Ras Al Khaimah sees strong European tourist inflow so it merits a direct connectivity between,” said Singh.
The SpiceJet chief also said the name and destinations for the new airline are still at the discussion stage.
According to him, there is a strong potential to make Ras Al Khaimah a hub for connectivity with Africa, Middle East and Europe.
Connecting Ras Al Khaimah to the World
The RAK airport certainly checks the boxes. For instance, UAE has strategic geographic location to connect India to Europe with the right aircraft. Jetfuel is also substantially cheaper (INR 139/gallon in the UAE v/s INR 245 in India). The range totally looks doable with the 737 MAX when it gets back in service. The 737 MAX8 has a published range of 3550 nm, and London is right almost at the end of that envelope.
The other angle to this that the RAK emirate still has seat quotas under the bilaterals. UAE has a unique arrangement with India where Dubai, Abu Dhabi, Sharjah and RAK have all negotiated individual seat capacities with India. As a part of this arrangement, there are about 1400 seats per week approved between India and Ras Al Khaimah, out of which only about 380 are used every week by the two Air India flights. So, there is room for 5 weekly flights from SpiceJet, yes, but also if SpiceJet wanted, to operate 1400 seats in the other direction with their other aircraft to be based at RAK.
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