SpiceJet targets profit via advertisements, in-flight sales

New Delhi: SpiceJet is banking on its ancillary business such as advertisements, in-flight sale of merchandise and cargo to turn profitable. It has set a revenue target of Rs 2,000 crore by next fiscal.
Working on the model of international low-cost carriers such as Easy Go and Ryan Air, that generate substantial ancillary revenues, SpiceJet aims to double its revenue from this segment to around 9% in the next fiscal from 5% and raise Rs 180 crore from it. SpiceJet chief financial officer Parth Sarathi Basu told ET: “We will focus on non-operational revenues in a big way. It will play a major role in turning SpiceJet profitable by the next fiscal year. We are introducing on-board advertisement and also plan to increase cargo intake on our aircraft.”
The low-cost carrier also plans to introduce travel insurance through online travel agents.
03/01/08 Chanchal Pal Chauhan/Economic Times

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Categories: SpiceJet Jan 2008