Low debt, regional connectivity will help SpiceJet fly high

Recent data of the market share of low-cost airlines on the website of Directorate General Civil Aviation (DGCA) show a sharp improvement.
Among listed entities, it is SpiceJet, which has gained market share considerably. In this calendar year, the Kalanidhi Maran-controlled company has gained 3% market share to record a share of 16.1% in October.
Its closest unlisted counterpart Indigo Airlines, which has emerged as the second-biggest player by market share, has been maintaining its market share just over 19% in the this calendar year. This shows that in the listed category, SpiceJet has absorbed a substantial portion of incremental passengers who travelled in the past one month.
In the coming quarters, this buoyancy in business would continue to enhance revenues of SpiceJet. One of the strategic advantages that has worked for SpiceJet is the slow, but definite, closing of Kingfisher Red, the low-cost carrier of Kingfisher Airlines.
13/12/11 Rajesh Naidu/Economic Times

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Categories: spicejet Dec 2011