No frills carrier SpiceJet has managed to turn around it fortunes by implementing effective cost reduction methods. The airline, which has now reported profits in last three quarters, has made its operations more efficient and is focussed on improving the load factor by effective pricing and inventory management on routes where it generates maximum revenues. “The company expects that the current growth of around 20% witnessed in the domestic market shall continue for the next eight to twelve months and thereafter will stabilise at around 10-12%,” SpiceJet’s annual report noted.
Data from Director General of Civil Aviation (DGCA) shows SpiceJet’s passenger load factor (PLF) stood at 92% in October while its market share improved to 12.8%. The low cost airline also carried 8.99 lakh passengers during the month.
During the winter the airline will look to operate 291 flights across the country in order to attract tourists. In October the airline announced that it will add 6 new aircraft to its fleet. Currently, Spice Jet operates in 22 cities.
As a part of its expansion drive the airline opened new routes from cities like Varanasi and increased frequency to places in north east like Agartala. SpiceJet plans to order 100-150 aircraft and is in talks with the major aircraft manufacturers like Airbus and Boeing in order to expand its existing fleet of aircraft.
The troubled airline has also implemented a fuel management programme which has resulted in better fuel efficiency compared to the last financial year despite the increased passengers and cargo, the company said in its annual report.
10/12/15 Malyaban Ghosh/The Financial Express
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Data from Director General of Civil Aviation (DGCA) shows SpiceJet’s passenger load factor (PLF) stood at 92% in October while its market share improved to 12.8%. The low cost airline also carried 8.99 lakh passengers during the month.
During the winter the airline will look to operate 291 flights across the country in order to attract tourists. In October the airline announced that it will add 6 new aircraft to its fleet. Currently, Spice Jet operates in 22 cities.
As a part of its expansion drive the airline opened new routes from cities like Varanasi and increased frequency to places in north east like Agartala. SpiceJet plans to order 100-150 aircraft and is in talks with the major aircraft manufacturers like Airbus and Boeing in order to expand its existing fleet of aircraft.
The troubled airline has also implemented a fuel management programme which has resulted in better fuel efficiency compared to the last financial year despite the increased passengers and cargo, the company said in its annual report.
10/12/15 Malyaban Ghosh/The Financial Express
