Impact of Changes in Fuel Charges on SpiceJet Booking

The world has become a global village with the onset of revolutionary technologies in the communication industry. People belonging to different parts of the world can get connected through video chat or voice calls in just a few seconds. This increased communication led to expansion of business as well as personal relations with people of different cities and countries, which in turn increases the need to cover long distance journeys for personal meetings, when required. People involved in such cross-country or cross-city businesses often opt for air booking to save their precious time and reach the destination without any hassle. Significant reduction in air fares has increased the affordability, and hence reports show a long jump in the number of fliers in the recent years.

The cost aviation turbine fuel (ATF) is extremely high in India as compared to other parts of the world. In order to provide a platform for new entrants and motivate existing player, respective authorities are making efforts to bring it down. A reduction of approximately 7.3 per cent in the existing prices announced by them has come as a sigh of relief. This is the fourth time a cut in ATF has been done and it is expected that low-cost carriers (LCCs) will make the most of it by reducing the cost of seat reservation. The chief operating officer (COO) of SpiceJet said that the load factor was around 86 per cent because of festivity season, backed by heavy discounts. However, a further fall in the prices will certainly increase SpiceJet booking in the coming months.

As per reports, the jet fuel rate for Delhi is approximately INR 62537.93 per kilolitre after reduction of INR 4987.70. The ATF in Mumbai is comparative high and stands at INR 64414.98 per kilolitre. Similarly, it varies with different states because of difference in the taxation policies. Cheaper procurement cost due to declining international oil prices led to reduction in price. As per industry experts, 40 per cent of the cost seat reservation with airlines is constituted by jet fuel. It is expected that India-based airlines may reduce tickets prices and Jet Airways, Air India, GoAir and IndiGo booking can increase in the following months.

New Strategies to Increase SpiceJet Online Booking

One of the leading low-cost carriers of the country – SpiceJet – is planning to implement new strategies to increase its profits and bookings. It has announced a number of sales and offers in the past few months, and air ticket booking with the airline has increased significantly due to this. It has become the largest service provider of the country as far as load factor is considered. In the previous quarter and months, it has recorded over 80 flight occupancy. Apart from this, it also stepped up in the ranking chart on the basis of market share, by pushing back Air India. This Sun Group-owned company has emerged as the first choice of fliers because of the cost efficiency and top-notch services.

It was started as an aviation foray of the Sun Group in the year 2005. The carrier has expanded its business in Indian as well as international market with a fast growth rate. Currently, it operates more than 350 flights everyday to various destinations with a fleet size of around 52 aircraft. However, the airline is planning to bring down the number of operating flights. As per reports, older models will be kept idle it is an attempt to lower the cost of operations as fuel efficiency of new aircraft is higher. The fleet of SpiceJet consists of efficient models like Bombardier Dash 8 Q400 aircraft and Boeing 737 Next Generation. However, some of them are quite old as well that increases the operational charges, and replacing them with new ones will prove to be beneficial for the carrier. It has placed an order of 57 new models scheduled to be delivered in the coming months. As soon as it is received by the company, the airline may drop down the price of tickets even further. This will increase the number of fliers opting for SpiceJet online booking in the coming future.

The carrier has started cutting down the capacity, and has successfully reduced it by 10 per cent. As per reports, it aims at shrinking it by 14 per cent by December. However, it is expected that with the receipt of new machines, it may start increasing the capacity.