Wednesday, September 12, 2018

SpiceXpress, SpiceJet's cargo airline, is full of promise; but there is turbulence ahead

With revenues from cargo increasing faster than that from tickets for almost all airlines last fiscal, SpiceJet has a good reason to start freight services.
The airline, earlier this week, launched its cargo unit named SpiceXpress and inducted its first freighter aircraft, a Boeing 737-700. The service will take off from September 18.
Curiously though, the cargo segment – just like passenger services - faces challenges in the form of inefficient infrastructure and intense competition cutting into margins. With additional capacity on its way, the Ajay Singh-led airline will have to play it right to make operations profitable.
This year, most airlines have shown a healthy increase in cargo volumes. SpiceJet’s cargo volumes were up nearly 35 percent till July this year - at 43,184 tonne – compared to the same period last year.
Similarly, Jet Airways also carried 10 percent more cargo over the same period. On the other hand, IndiGo’s cargo volume fell marginally to 98,625 tonne, from a little over a lakh tonne a year earlier.
12/09/18 Prince Mathews Thomas/