With an eye on steady revenue flow, SpiceJet plans to focus more on the cargo and ancillary business in line with many global carriers. Founder and chairman Ajay Singh says the no-frills airline plans to raise its revenues from the ancillary business to 20% of total revenues by FY17 from 16% in the first nine months of this fiscal.
“Increasingly, we are working on our allied businesses like Spice Locations and trying to build a logistics and holiday business as well. We are also trying to build an aviation academy,” Singh told FE. “We have a large base of customers who buy air tickets. We will try to sell them some other services as well like rooms, taxi rides or even an activity in the destination where they intend to fly.
We intend to grow our ancillary revenue in a fairly traditional way and hope to take it to more than 20%,” Singh added.
The airline, which was on the verge of closure in December 2014, managed a comeback not only on the back of passenger revenues but also on the ancillary business front. In the beginning of 2015, SpiceJet’s revenues from the ancillary business stood at 6%, which subsequently increased to 16% of total revenues at the end of the October-December quarter of the current fiscal.
10/02/16 Bilal Abdi/Malyaban Ghosh/Financial Express
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“Increasingly, we are working on our allied businesses like Spice Locations and trying to build a logistics and holiday business as well. We are also trying to build an aviation academy,” Singh told FE. “We have a large base of customers who buy air tickets. We will try to sell them some other services as well like rooms, taxi rides or even an activity in the destination where they intend to fly.
We intend to grow our ancillary revenue in a fairly traditional way and hope to take it to more than 20%,” Singh added.
The airline, which was on the verge of closure in December 2014, managed a comeback not only on the back of passenger revenues but also on the ancillary business front. In the beginning of 2015, SpiceJet’s revenues from the ancillary business stood at 6%, which subsequently increased to 16% of total revenues at the end of the October-December quarter of the current fiscal.
10/02/16 Bilal Abdi/Malyaban Ghosh/Financial Express
