Spice Jet

Flying for ever yone

Introduction
Introduction
 A low Cost Airline
 Began services in May 2005 to serve
passenger travel
 Key executives :
 Sanjay Aggarwal (CEO)
 J.S. Dhillon (Exec. VP)
 Samyukth Shridharan (CCO)

History
 Earlier Known as Royal Airways
 Marked their entry with Rs 99 fares for first 99
days with 9000 seats available at this rate.
 This was followed by Rs 999 offer

 Spice jet names there aircrafts after spices e.g

VT- SPD Chilli, VT- SPJ Mint etc.
Fleet
 The Spice Jet fleet consists of the following
aircraft as of February 2009


Aircraft
Boeing In services 9Order
16 Passenger Routes
189 Domestic
737-800
Boeing 5 - (Economy)
212 short haul
Domestic
737-900
Total ER 21 9 short haul
Fleet
Market Share & Competitor
Major Competitor
Strategy
 Fare as low as Rs 99/-
 Consolidation eased competition & gave
pricing power to players
 Air fare expected to increase by 3.6% by end
of 2010
 Tapping railway passengers as their customer

 Cost cutting in areas of employee costs, lower

inventory, selling and distribution cost and
other operating cost
 Better route strategy, superior load factor

 Planning to add 6 aircrafts per year to the

fleet
Strategy
 4 planes will be B737-900ER type that can
carry 215 passengers as compared to 189
passengers
 B737-900ERare fuel efficient saving 7-9% in
operating cost
 Inclusion of fuel surcharge due to high ATF
price
 Congestion surcharge due to congestion at
busy airports
Classical LCC Model
 Use of selected aircraft type with single class
configuration
 Use of Ancillary services

 Rational fleet Utilization

 Sale & lease back agreement


Ancillary Revenue Stream

In flight Catering Selling Insurance Excess Baggage

Providing HotelsSources of Ancillary revenue Car Rentals

Couriers & Cargo Promotional offers Selling space for advertise

Stock prices in last one year
Balance Sheet
Risks & concerns
 Infrastructure constraints
 Entry of new players

 Lower then expected improvements in fares

 Increase in ATF prices

Future Plans
 20 New Boeing Aircrafts to fleet
 New route networks

 Planning to fly abroad to South Asian countries


Thank you