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.
The Sun Group owned airline – SpiceJet – is in the process of establishing new performance benchmarks. This leading low-cost carrier (LCC) has a fleet size of around 79 aircraft and operates more than 350 flights every day, catering over 55 international and national destinations. Second quarter reports published by the Directorate General of Civil Aviation (DGCA) showed a positive change in the market share of this airline. It replaced Air India – the national airline – from the third rank. Capacity addition, introduction of new routes and cheapest airfare helped the carrier in gaining significant market share in the previous month. Now it carries more than 20 per cent of total fliers, which make it the second largest airline of the country followed by IndiGo. As far as seat occupancy is concerned, it tops the charts and leaves behind all the other carriers, according to a data revealed by DGCA.
As per industry reports, cheap SpiceJet flight fares and flash sales allured a large number of leisure as well as business travellers who had never travelled with the carrier before. Top-notch amenities and simplified booking process helped it in retaining the existing fliers. Officials said that these offers were rolled out with proper planning, and it did not take hit on the revenue. The LCC flew its aircraft with almost 79 per cent occupied seats, whereas IndiGo saw a downfall and optimised only 67 per cent of the capacity. Air India, Jet Airways, GoAir, Air Costa and AirAsia recorded approximately 69, 64, 69, 65 and 69 per cent occupancy, respectively, in the month of July. The tourism industry is thriving at a quick pace and around 5.21 million passengers enjoyed air travel in the previous year. It has broken the myth that carriers cannot fly aircraft with full capacity in the lean season.
In recent months, the term – price war – in Indian aviation has been grabbing the headline space more often than not with airlines making a beeline to woo customers with their various domestic flight offers. As many as seven, including the recent one from SpiceJet, has been the story so far in 2014. This calls for some scrutiny as to why airlines are so desperately selling their tickets at discounted prices, at a time, when all they can show in their balance sheets is heavy losses. Is the discount strategy a way to cover up the losses or is it the fear of losing market share to new possible entrants into the already packed sector?
Expert View
Industry experts, with their groundwork done, are of the opinion that both the above-mentioned factors have led to this situation. The losses from the previous year are haunting carriers, and they want to get rid of it as soon as possible; however, the fact is not all can say that they have been successful in their endeavour, even after so many discount offers. The only positive that has come out from all these sales deals is the reaction from the general public, which can be safely said to be overwhelming, especially for SpiceJet offers.
The other issue that has been hanging like a sword on the necks of domestic carriers is the likely foray of international carriers in India, the most threatening among them being Air Asia. Such is the scenario that domestic airlines have filed a petition with the Director General of Civil Aviation (DGCA), through their federation, to not allow Air Asia to start its operations in the country.
It is to be been as what is the future of Indian aviation in coming months and how many times more, can we expect SpiceJet discount deals in 2014.
Travellers who were thinking that the season of flash sales were over have been proved wrong once again by lowest air fare providers, SpiceJet. This low-cost carrier (LCC) has launched yet another season of low flight fares, paving the path for increase in its flight booking. Discounts have been offered by SpiceJet and other LCCs from the beginning of this calendar year. There has been a steep rise in flight ticket booking due to this factor. As the LCCs continue to launch newer discounts at regular intervals, it is expected that the booking will further increase in the recent future.
Facility for Fliers opting for Travel in the Eastern Zone
According to the latest flash fares, tickets will be available at as low a fare as that of 1899 and 1999 INR. These fares are all inclusive and tare consolidated amount except the surcharges. Initially, these offers have been launched from the cities of Coimbatore, Rajahmundry, Varanasi, Ahmedabad and Chandigarh. Travellers looking to make a Spicejet online booking to the eastern zone will be happier because the lower airfare has been targeted to the cities of Bagdogra, Kolkata, Guwahati and Agartala. The price of 1899 INR is targeted for flights to these cities in the eastern part of the country.
The Sun-group airline has been looking forward to boost the sale of its tickets after having a poor run in the last financial year. However, it has not been able to return to profiting ways in spite of continuous efforts. Booking of tickets for this discounted airfare will be available 2nd of May and is valid for travelling from July 1st to September 30th. The carrier will be surely hoping to make the most of these flash sales and look forward to return to profiting ways as soon as possible.
If you are looking for a cheap air ticket for domestic travelling, there are more options waiting for you. Popular low-cost carrier (LCC), SpiceJet, has launched, yet another round of discounts for travellers, making it seven in a row, from the beginning of this calendar year. This time, it is the western part of the country that the LCC has targeted to offer its flash reduced flight fares. The offer was announced on April 16th, 2014 and is valid for three days, where booking can be done by travellers. Travel period for this reduced booking rate is valid from June 10 to August 10, 2014.
Important Cities in Western India Targeted by Discounts
This discount is valid for travel from popular cities in the western part of the country. As a result of this discount, travellers will be able to book tickets from approximately 30 destinations for a price of a little over 2000 INR. This is comparatively half of the ticket rate as compared to the original. Some of the most popular locations covered by this discount are Surat, Pune, Mumbai, Indore, Goa, Aurangabad, and Ahmedabad. SpiceJet Airlines ticket booking is expected to witness a boost as a result of this flash discount.
SpiceJet was recently reprimanded by Directorate General of Civil Aviation (DGCA) for launch of the one INR base fare scheme. The authorities had termed such sales as predatory and immediate orders were issued to stop such unrealistic discounts. However, the Kalanithi Maran backed airline seems to have taken it in a positive way. They understood where they had stepped their feet wrong and soon made amends. This time around they have come up with a more practical and realistic offer, which will definitely encourage travellers to make a booking. Simultaneously, the carrier hopes to make good business, both during the lean and peak seasons.
