The turnaround story of 'spice jet’

Presented by: Group 1

 SpiceJet Limited is an Indian low-cost
airline headquartered in Gurgaon

It is the second largest airline in the

Introduction country by number of domestic
passengers carried, with a market share of
13.6% as of March 2019

The airline operates 312 daily flights to 55

destinations, including 47 Indian and 7
international destinations from its hubs
at Delhi, Kolkata, Mumbai and Hyderabad
 1984 - The Company was 1993 - The name of the
incorporated on 9th company was changed to
February as a private MG Express Ltd. on 17th
limited company in the February.
name and style of Genius
Leasing Finance and
Investment Company
Limited.

In the first phase of

The Company diversified operations, three Boing
its activities into domestic 737-200 advance air craft
aviation operations was commissioned in
service

History
The Company entered into
- In the second phase of
an agreement with
operations, the Company
Lufthansa for spares,
was to acquire on dry
services and maintenance
lease, four Boing 737-400
and training of flight crew.

1994 - In September, the

Company signed an MOU
with Indian Oil Corporation
Ltd. to arrange the imports
of aviation turbine fuel and
the first consignment was
expected in the 2nd week
of January 1995.
 Effective 12th SpiceJet stated
April, the name of that it will order
the company was In 2000 airline was 30 Boeing 737-800
changed from MG started again by Name changed to aircraft to take its
Express Ltd. to the name Royal Spicejet fleet size to 58
Modiluft Ltd. Airways planes.

1996 2005 Sun 2012

History 1994 2000 2006 2010

In 1996, company Royal Airways Since media baron In 2012, SpiceJet

airline ceased launches Delhi- Kalanithi Maran of suffered a loss of
operations. Ahmedabad- the Chennai based over ₹390
Mumbai service Sun Group million (US$5.6 mi
on May 24, 2005 acquired SpiceJet llion) owing to
in 2010 increase in global
crude prices.
 In January 2015, the Sun group sold its entire shareholding and
transferred control to Ajay Singh

It has been quite a turnaround for SpiceJet.

In December 2014 the low-cost Indian airline was on the brink of

collapse following five consecutive years in the red (culminating in an
annual loss of $159m - £122m - for that year).

Turnaround
It was even forced to cancel more than 2,000 flights because it hadn’t
paid its bills and oil companies were refusing refuel its planes.

SpiceJet’s move to become the prime mover by being the first airline
flying to smaller cities hurt them badly

Bloomberg highlighted the good work of “white knight” chairman

Ajay Singh for “cutting loss-making routes and aggressively adding
capacity in one of the world’s fastest growing markets”.
 In March 2014, the airline signed a US$4.4
billion deal with Boeing for the procurement of
42 737 MAX 8 aircraft

Operations In January 2017, the airline placed a firm order

for 100 737 MAX 8 aircraft taking its total order
and to 155 MAX 8 aircraft with purchase rights for
expansion 50 additional MAX 8 and wide-body aircraft

The budget carrier plans to grow its operational

fleet to 200 airplanes by the end of the decade
and expand regionally with the new 737 MAX
family of airplanes
 While it is a low-cost airline, passenger
can opt for “SpiceMax”, whereby they
pay a little extra for more legroom and
a meal. There is no in-flight
Operations entertainment on board, however.
and
expansion Its food gets a rating of 8.4 on the
website In-flight Feed. It even offers
cakes for those celebrating a special
occasion
Thank you