In a fiercely price-competitive market, where IndiGo is king, rival SpiceJet has decided to cash in on territories left uncharted by its counterparts in the international as well as domestic skies.
The trick to profitability in international skies is not to follow the beaten path of safe routes but to go for a blue-ocean strategy, developing new markets instead of trying for a share of established markets. Rival low-fare carrier IndiGo has, meanwhile, been expanding flights to Dubai and Southeast Asia from several Indian cities.
Neil Mills, CEO at low-cost carrier SpiceJet, “is banking on innovative alternative routes, which are difficult to set up but where you have at least six months to one year of a head start,” a report in the Business Standard said today. According to Mills, Singapore or Kuala Lumpur represents eroded margins, due to cut-throat competition from Day One, because of too many carriers are chasing the same route.
28/09/12 Sunainaa Chadha/First Post
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The trick to profitability in international skies is not to follow the beaten path of safe routes but to go for a blue-ocean strategy, developing new markets instead of trying for a share of established markets. Rival low-fare carrier IndiGo has, meanwhile, been expanding flights to Dubai and Southeast Asia from several Indian cities.
Neil Mills, CEO at low-cost carrier SpiceJet, “is banking on innovative alternative routes, which are difficult to set up but where you have at least six months to one year of a head start,” a report in the Business Standard said today. According to Mills, Singapore or Kuala Lumpur represents eroded margins, due to cut-throat competition from Day One, because of too many carriers are chasing the same route.
28/09/12 Sunainaa Chadha/First Post
