SpiceJet has signed an agreement to lease with GMR Hyderabad Aviation SEZ Limited (GHASL), for setting up warehousing, distribution and the trading facility in the airport operator’s aerospace and industrial park, the budget carrier announced on Friday.

GAHSL is a fully-owned subsidiary of GMR Hyderabad International Airport Ltd (GHIAL).

As per the agreement, the facility will come up within the Free Trade Warehousing Zone of multi-product special economic zone (SEZ).

The facility will be initially spread over in 33,000 sq feet area, however, it can later be expanded to one lakh sq ft if demand increases, SpiceJet said in a release.

Airline Chairman and Managing Director Ajay Singh said, “as we expand SpiceXpress, our cargo arm, SpiceJet is proud to partner with GHASL for this first-of-its-kind initiative by an airline in India which will enhance and facilitate cargo industry in the country. The Free Trade Zone and the end-to-end service provided by SpiceXpress will boost businesses saving valuable time for the airline’s partner companies.”

The Free Trade Zone and the end-to-end service provided by SpiceXpress will boost businesses saving valuable time for the airline’s partner companies, he said. Many companies such as CFM Aircraft Engine Support South Asia, SAFRAN Electrical and Power India, United Technologies Corporation India, Turbo Aviation, GMR Aero Technic, among others, already have their facilities in the industrial park.

“We welcome SpiceJet at GMR Aerospace & Industrial Park. Its presence adds great value to the niche space of Free Trade Warehousing Zone,” GHASL Chief Executive Officer Aman Kapoor said on the tie-up.

The pharma, aerospace and defence, electronics, automotive and FMCG client base at Telangana will benefit from the availability of warehousing catering to the export and import of goods from Hyderabad Airport, Kapoor noted.

SpiceJet recently initiated its ‘Marine Krishi Udaan’ with an aim to boost India’s shrimp farming. Under the initiative, the company introduced dedicated freighter flights from Chennai and Vishakhapatnam to Surat and Kolkata carrying freshly harvested shrimps.

The airline’s cargo services operate on both domestic and international routes, fueled by a fully-integrated transportation network across the country.

On the other hand, GMR Aerospace and Industrial Park currently deals with international clients including  CFM Aircraft Engine Support South Asia Private Limited, SAFRAN Electrical & Power India Private Limited, and many others.

(With input from agencies)