India's growing budget air travel market spiced up Tuesday with the launch of low cost carrier SpiceJet, which begins operating on domestic routes next week with a debut price of Rs. 99.

With a fleet of three Boeing 737-800 aircraft and an initial investment of $25 million, SpiceJet will operate its first flight on Monday on the Delhi-Ahmedabad-Mumbai route. On May 27, the airline will fly to Goa and on June 13, to Pune and Bangalore.

"We see ourselves taking train traffic and putting it in air, creating a new market for seniors, students, leisure and train travellers," said SpiceJet CEO Mark Winders.

Some 30 pilots are on board the new budget operator.

"Right now we are only looking at the domestic market. We are offering one-and-a-half to two-hour flights as an alternative to train journeys of more than six hours."

He said by January 2006, the airline would have 10 brand new aircraft. "We see ourselves with a fleet of 20-30 airplanes eventually."

The company aims to issue convertible bonds in June to raise $90 million for its fleet expansion plans.

Within hours of its online booking facilities opening at 6 a.m. Tuesday, the airline had registered 5,000 bookings.

Winders said to celebrate the launch of the airline, SpiceJet would offer over 30,000 "Red Hot Special Fares" starting at Rs. 99 for the first 99 days of its operation.

These fares would also be available at Rs. 499 and Rs. 799. Over 9,000 seats would be available under the introductory offer and all flights would offer between five to 10 seats daily at low prices.

The airline offers a single class in all its 189-seater planes, with complementary snacks and water.

Initial destinations include Delhi, Ahmedabad, Mumbai, Goa, Bangalore and Pune.

"It is not just the price, but what we offer at that price and our commitment to high quality service that will differentiate and position SpiceJet," Winders asserted.

Company director Ajay Singh said SpiceJet, a reincarnate of ModiLuft, was 20 percent owned by foreign institutional investors and other institutions such as Citibank, ABN Amro and Goldman Sachs.

Royal Holdings Services Limited, a Nevada-based company, has a major stake in SpiceJet.

--Indo-Asian News Service