SpiceJet may hike prices by Rs 500-1,000 from January 1,2008. Speaking to CNBC-TV18, Siddhanta Sharma, MD and CEO, SpiceJet said that they will declare operating profit this quarter.

He added that the current market share is at 10.5%. SpiceJet is not looking at any acquisition or dilution for now, he stated.

Excerpts from CNBC-TV18’s exclusive interview with Siddhanta Sharma:

Q: Are we looking at a price increase? We have seen an increase of about Rs 300 per ticket from December 2?

A: In this quarter, where the demand peaks up tremendously, the prices and the yields have firmed. This is not to say that we have given away our cheap fares, which were introductory fares. We did do some promotions right from September- October.

But the yields have gone up. We are looking at an improvement of almost Rs 300-350, as compared to the previous quarter. So, we currently stand at about Rs 3,100.    

Q: Are we looking at another increase in the New Year?

A: I do not think so. If the fuel prices do come down, we would probably reduce the fuel surcharge. Also, after January 15 till the end of March, the demands ebbs down, especially business travel, because of the less number of holidays, the leisure travel goes down. So, I don’t think the prices would be going up.

Q: What are your capex plans? What do you hope your fleet size to be over the next couple of years? How do you propose to go about funding the same?

A: All the aircrafts, which will be coming till 2011, would again be on lease. Based on our performance, we would be able to get a finer price. So, that is all done.

In addition to that, the regular capex, which is airport-related will continue. That is to the tune of about Rs 25 crore a year. I do not think we will require fresh funding for that.           

Q: Give us an idea of the consolidation that we are seeing in the industry. Do you think as a result of that ticket prices and subsequently yields are going to go up? If yes, by how much over the next three-six months?

A: There were two players in the market, who were offering very cheap tickets, they were far below the cost and that situation has improved over the acquisition. So we would certainly see some improvements in the yields. What Spicejet is very careful about that is given our costs, which are the lowest in the industry we feel that we will be the first one to get benefit out of this consolidation or price increase. But as far as we are concerned the idea at the moment is to continue as a undiluted pure low-cost carrier.   

Q: What would be your load factors currently? What do you think it would look like once this entire season is over? Could you put a number to what your fleet size would be said at the end of 2010?

A: Our load factors in this quarter would be in the region of 80%. In December, on certain days, we have experienced 91-92% on the network. But that is due to some very high-holiday travel. So, it is roughly 80% there.

As far as fleet size is concerned, by March 2011, we should be 31 aircrafts. By the end of 2010, that should be about 29. Our market share is 10.5% with only 15 aircrafts, whereas some of the other players with double the size are only a couple of percentage points ahead of us. So, there are pretty good load factors there and good team working.