SpiceJet to fly high on spending power

Mumbai: The domestic airline sector has seen strong growth in passenger traffic over the last few quarters on account of improving macro-economic environment, leading to higher spend on travel.
Domestic airlines may witness a 10-12% growth in demand as the economy starts growing at around 8%. This along with stable fuel costs would benefit low-cost carriers like Spicejet. which has seen excellent occupancy levels in last few months.
SpiceJet is the one of the leading low-fare airlines with a strong presence in domestic market. It is the second-largest low-cost carrier (LCC) after Indigo – with a fleet of 20 Boeing 737-800/737-900ER planes. SpiceJet’s aircrafts are configured in a single economy class having 189 seats, which is among the highest in the industry compared with 150 seats by a full-service carrier (FSC).
The company operates around 125 flights daily to 19 destinations covering all regions of India. Its on-time performance is among the best and coupled with a technical dispatch reliability of 99.6%, the company claims to have the least number of flight cancellations.
SpiceJet has a market share of about 12.5% in domestic market, which is seeing demand as the economy improves. It completes its fifth year of operation in May this year and is looking forward to start its international operations by next year, making it the first domestic budget carrier and third overall, after Jet Airways and Kingfisher, to fly overseas.
Spicejet, which recently took delivery of its 20th aircraft, is expected to receive 5 more airplanes by next year. It plans to add further 4-5 planes in FY12 resulting in capacity addition of around 20% per annum over the next two years.
05/04/10 Nitin Shrivastava/Daily News & Analysis

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Categories: spicejet Apr 2010