Smooth takeoff: SpiceJet stock soars nearly 7% after co offers EMI option on its new scheme

Shares of low-cost carrier SpiceJet sky-rocketed nearly 7 percent in early trade Friday, boosted by the company’s new scheme offer called ‘Book Now, Pay Later’.

As per the scheme announced late Thursday, passengers with credit cards issued by the above mentioned banks can pay as per their own preference of schedule that may vary between 3 and 12 months, at interest rates in the range of 12-14 percent, compared to typical credit card interest rates in excess of 36 percent.

The scheme is valid for passengers booking tickets through India-issued credit cards of Axis Bank, HSBC Bank, Kotak Bank, and Standard Chartered Bank (other banks will be added shortly).

The facility is available for bookings made through the SpiceJet website. In case of airfare refunds, customers will have to bear the costs of the interest rate already billed for that particular booking.

“ We are confident that this scheme will make air travel more economically-viable than ever before for those customers who want to travel now, but pay later”, SpiceJet’s Chief Marketing Officer, Mr. Debojo Maharshi said.

Despite a sluggish broad market sentiment, shares of SpiceJet at 10.50am was traded at Rs 24.55, up 6 percent from previous close after rising to a high of Rs 24.70. Over the past one month, the stock has surged over 24 percent on hopes of a quicker turnaround by the new management. Also, the falling oil prices, which constitutes a key component of the total cost an airline incurs, also seem to be aiding sentiment.