Sub-lease aircraft, pare lean-season losses

Bangalore: Having taken a big hit on yields during the lean season (January and February), budget carrier SpiceJet will hedge itself during the next lean phase (July -September).
How will it offset the lean season? By sub-leasing aircraft from its fleet to European carriers during the lean season, it earns additional revenue.
SpiceJet will also try to increase ancillary income, CEO and chairman Siddhanta Sharma told analysts at a conference call on Wednesday.
“June-end to September is the peak season in Europe, so we will sub-lease aircraft to European airlines in that period rather than bleed locally. It will earn us good income. We will also increase ancillary income from sale onboard and in-flight advertisement,” said Sharma.
The low cost carrier’s yield has tumbled from Rs 2.20 in December to Rs 2.16 in January. It fell further to Rs 1.96 in February.
Besides capacity addition, Sharma also blamed competition for the drop in yield.
04/05/07 Praveena Sharma/Daily News & Analysis

To Read the News in full at Source, Click the Headline

Categories: SpiceJet Apr 2007