GURGAON- On Thursday (Jan 11, 2024), SpiceXpress, the cargo arm of SpiceJet (SG), announced a strategic partnership with Bengaluru-based Star Air to effectively manage the belly space capacity for cargo transportation within Star Air (S5) fleet.
Star Air, owned by the Kolhapur-headquartered Sanjay Ghodawat Group, operates nine Embraer planes, servicing 20 domestic destinations.
SpiceXpress Star Air Partnership
This collaboration is a testament to SpiceXpress’s dedication to expanding its coverage and fortifying the domestic air cargo infrastructure, as highlighted in a statement by SpiceJet.
The partnership with Star Air is anticipated to substantially augment SpiceXpress’s domestic network by incorporating nine new destinations.
The three-year agreement, extendable by mutual consent, establishes a robust foundation for seamless cooperation between the two companies.
SpiceXpress has identified nine new destinations, namely Belagavi, Bhuj, Kalaburagi, Kishangarh, Kolhapur, Jamnagar, Jodhpur, Nagpur, and Shivamogga.
This expansion will elevate SpiceXpress’ domestic network from 39 to 48 destinations, reinforcing its capabilities in door-to-door delivery and postal services, as outlined in the company’s statement.
Executive Remarks
Jai Singh Sadana, Chief Business Officer at SpiceXpress, emphasized the significance of this partnership with Star Air, marking a noteworthy milestone in broadening their domestic cargo network.
The addition of these nine destinations aligns with their vision of connecting underserved regions, he stated.
The collaboration not only provides SpiceXpress with access to more delivery points and an increased daily cargo volume but also strengthens their last-mile presence, Sadana added.
Furthermore, the extended door-to-door connectivity will now reach pin codes that were previously untouched, according to Sadana.
Simran Singh Tiwana, Chief Executive Officer at Star Air, highlighted that the alliance grants Star Air the flexibility to unlock cargo potentials in Tier-2/3 cities across the country.
Fresh Fund Injection
In the annual general meeting, SpiceJet MD Ajay Singh stated that the recent injection of funds will fortify SpiceJet, making it a more robust and resilient airline in the country. Additionally, he highlighted the potential market opportunities that would arise from this capital infusion.
Furthermore, Singh emphasized that the new capital injection would facilitate the restoration of grounded aircraft to operational status.
Amidst reports suggesting interest from its minority equity partner and global aircraft lessor Carlyle Aviation Partners in acquiring SpiceJet and its cargo arm SpiceXpress, insiders have indicated strong support for the airline from Carlyle. They mentioned that Carlyle is actively interested in both the airline and SpiceXpress.
In the preceding year, Carlyle Aviation Partners had acquired a 7.03 percent stake in SpiceJet.
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