Ailing Afghans Enduring Taliban Rockets Attract SpiceJet

Bibihaji Zia plans to return to Kabul next week after knee surgery in New Delhi. She’ll fly with SpiceJet Ltd. (SJET), part of surge in Afghan medical tourism that’s a silver lining for the indebted Indian airline.

“There are hospitals in Afghanistan, but the quality of medicine is the biggest issue,” said the 54-year-old’s son, Sediq, who organized the ticket. “Getting Indian visas is easy. The alternative, Pakistan, is less secure and less friendly.”

SpiceJet is the only private Indian carrier with direct flights to war-torn Afghanistan, a route that’s busy even after Taliban militants fired rockets at Kabul airport and the MH17 disaster in Ukraine underscored risks in conflict zones. The number of Afghans seeking treatment, up 21 percent last year to more than 32,000, is set to climb further after Indian Prime Minister Narendra Modi relaxed visa rules to deepen ties.

SpiceJet’s data show it flies about 1,000 Afghan medical tourists and their relatives each month from Kabul to New Delhi, which may earn the company about 156 million rupees ($2.6 million) a year based on average ticket prices. The carrier said the route is “very positive” when asked about profitability, without giving more details.

That contrasts with the mounting costs and competition in India’s skies that led SpiceJet to lose 1.24 billion rupees in the April-June period, its fourth straight quarterly loss.

Shares in the airline, majority owned by billionaire Kalanithi Maran, jumped as much as 5.3 percent before closing up 3.3 percent in Mumbai, exceeding the 0.2 percent climb in the benchmark S&P BSE Sensex index. The stock is down 17 percent in 2014, compared with a 25 percent rise in the Sensex.

‘Little Afghanistan’

Zia, who like many Afghans watched Bollywood films while growing up and speaks Hindi, said he paid $3,700 for his mother’s knee replacement at Saket City Hospital in India’s capital. The same procedure costs about $19,200 in Singapore and $34,000 in the U.S., according to Patients Beyond Borders.

Zia, 24, studies in New Delhi and stays in the city’s Lajpat Nagar neighborhood, a “Little Afghanistan” that draws Afghan medical tourists and is dotted with travel agencies and restaurants bearing Pashto signboards.

“Demand is quite high for Delhi-Kabul flights,” said Mehtab Singh, a manager at Welcome Travels in Lajpat Nagar. “We book 20-25 tickets to Kabul every day during peak season.”

Among the other Afghans in New Delhi is 11-month-old heart patient Shukraan Nezamuddin from Mazar-i-Sharif. Her father, Nezamuddin, described India as a safer place for surgeries.

$6 Billion

They plan to return on Kam Air, an Afghan carrier, after an operation at Fortis Memorial Research Institute on a hole in her heart. The hospital arranged for her transfer from the airport.

Afghan patients are part of an Indian medical tourism industry that will double in value to $6 billion by 2018 with 400,000 arrivals, up from about 230,000 currently, the PHD Chamber of Commerce and Industry estimates.

The two-hour, 625-mile (1,005-kilometer) trips linking the Indian capital with Kabul in Afghanistan, where the U.S. plans to withdraw almost all troops by the end of 2016 after its longest war, come with unusual risks.

On July 3, the Taliban attacked the airport in the Afghan capital with rockets while a SpiceJet plane was parked there. The assault on a military zone damaged three helicopters and a hangar, said Mohammad Yaqub Rassouli, head of Kabul airport.

Threats from conflicts are in sharper focus after Malaysian Airline System Bhd.’s Flight 17 was shot down last month over Ukraine, killing all 298 aboard.

Security Measures

SpiceJet, which briefly suspended flights to Afghanistan after the Kabul rocket attack, wasn’t the target of the firing and has security steps in place, Sudipta Das, a spokeswoman for the company, said in an e-mail.

The carrier faces a fight to stem losses in an Indian aviation industry where Kingfisher Airlines Ltd. (KAIR) ceased operations almost two years ago after amassing debt. SpiceJet, whose debt erased its net worth, has fallen behind on airport dues and restructured aircraft deliveries.

The airline, India’s second-biggest by market share, is one of four Afghans rely on for regular direct links from Kabul to New Delhi. The others are state-owned Air India Ltd., and Kabul-based Kam Air and Safi Airways Co.

“High risk or war risk routes are high yield,” said Mark D. Martin, chief executive officer of Dubai-based Martin Consulting LLC. SpiceJet’s core Indian network provides the bulk of its revenues and has struggled, he said.

Visa Surge

India introduced a medical visa for Afghans in 2005. Modi eased the rules on July 1, potentially allowing Afghans to stay for as long as two years at a time and exempting medical tourists from some police registration chores.

A fifth of Afghans had a family member or close friend who died because of a lack of access to health care within the preceding 12 months, Doctors Without Borders said in a survey published in February.

India issued about 100,000 visas to Afghans in 2013 -- including more than 32,000 medical permits -- up from around 85,000 in 2012, according to Niteen S. Yeola, a political officer at the Indian embassy in Kabul.

Raju Vaishya, a senior orthopedics consultant at Indraprastha Apollo Hospital in New Delhi, said he operates on about 600 Afghan patients a year “mostly for untreated problems and for complications from being badly treated.”

An example is 36-year-old Nasr Zia-ul-Haq from Samangan in Afghanistan, whose broken arm wasn’t fixed properly at home.

The demand for flights from patients such as Zia-ul-Haq may lead SpiceJet to increase services from three a week currently. The airline said it would expand if slots are available and it’s attractive to do so.

Sediq Zia, the student, hopes flight links by SpiceJet and others keep growing. A nearby alternative for medical treatment, Pakistan, is less welcoming as the government there tries to stem militant infiltrations from Afghanistan.

“Once I was going home with my girlfriend at 2 a.m. in Delhi, and the cops gave me a lift. Can you imagine the same in Pakistan? There, they’d probably shoot me the moment they realize I’m an Afghan,” he said.

To contact the reporters on this story: Anurag Kotoky in New Delhi at akotoky@bloomberg.net; Soumya Gupta in Mumbai at sgupta329@bloomberg.net

To contact the editors responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net Sunil Jagtiani, Dick Schumacher

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Photographer: Kuni Takahashi/Bloomberg

Afghan Sediq Zia, whose parents are undergoing orthopedic treatment, sits in a rickshaw in the Lajpat Nagar area of New Delhi.

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Photographer: Kuni Takahashi/Bloomberg

Afghan Sediq Zia, whose parents are undergoing orthopedic treatment, sits in a rickshaw in the Lajpat Nagar area of New Delhi. Close

Afghan Sediq Zia, whose parents are undergoing orthopedic treatment, sits in a rickshaw in the Lajpat Nagar area of New Delhi.

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A SpiceJet Ltd. aircraft prepares to land at Chhatrapati Shivaji International Airport in Mumbai. Close

A SpiceJet Ltd. aircraft prepares to land at Chhatrapati Shivaji International Airport in Mumbai.

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Sulaiman, from Afghanistan, whose brother is undergoing medical treatment, purchases medicines at a pharmacy in the Lajpat Nagar area of New Delhi. Close

Sulaiman, from Afghanistan, whose brother is undergoing medical treatment, purchases medicines at a pharmacy in the... Read More

Photographer: Kuni Takahashi/Bloomberg

Store signs written in English and Pashto, one of the two official languages of Afganistan, stand in the Lajpat Nagar area of New Delhi. Close

Store signs written in English and Pashto, one of the two official languages of Afganistan, stand in the Lajpat Nagar... Read More

Photographer: Kuni Takahashi/Bloomberg

Raju Vaishya, senior orthopedics consultant, sits in his office at at the Indraprastha Apollo Hospitals facility, operated by Apollo Hospitals Enterprise Ltd., in New Delhi, India. Close

Raju Vaishya, senior orthopedics consultant, sits in his office at at the Indraprastha Apollo Hospitals facility,... Read More

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Foreign exchange rates are displayed at a currency exchange counter in the International Patients Lounge at at the Indraprastha Apollo Hospitals facility, operated by Apollo Hospitals Enterprise Ltd., in New Delhi. Close

Foreign exchange rates are displayed at a currency exchange counter in the International Patients Lounge at at the... Read More

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Afghan patient Ziaull Haq sits on a bed while waiting to go into surgery at at the Indraprastha Apollo Hospitals facility, operated by Apollo Hospitals Enterprise Ltd., in New Delhi. Close

Afghan patient Ziaull Haq sits on a bed while waiting to go into surgery at at the Indraprastha Apollo Hospitals... Read More

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