industry analysis of indian airlines giant spiceje

1. Nandeesh Tiwari
Kajal Parmar
Rishabh Gupta
Shaunak verma
Uday Vir Lakhanpal

2. Spicejet Industry Analysis
• Business
model
• Key
financials
• Strategic
group
• Key
success
factors

3. Low cost airlines, headquartered in Gurgaon.
Fourth largest airline in the country.
Market share – close to 14%
312 daily flights ( 47 national and 7 international
destinations)
Fleet size- 78
Revenue – Rs. 7933 crores
Net income – Rs. 557 crores

5.  High emphasis on minimizing operating costs and without some of
the traditional services and amenities provided in the fare, resulting
in lower fares and fewer comforts.
 These airlines use the following strategies to keep their costs low –
 Aircraft
 Bases
 Simplicity
 Non-flight revenue
 Limit personnel costs

6.  What SpiceJet does in addition –
 Absent non-essential features
 Use of secondary airports for lower landing fees and marketing
support
 Rapid turnaround
 Online ticket sales
 Baggage charges
 Passenger loading via stairs rather than jetways
 Hedge fuel costs
 Route planning before aircraft arrives at airport

12. Low Cost Carriers
• Focus on Operational
Efficiencies
• Mainly focused on
regional markets
• Don’t generally offer
Corporate deals
Mainline Carriers
• Focus on
Differentiation through
services offered
• Part of Alliances eg.
Star Alliance etc
• Corporate Deals

13. Entered with RS 99 fares for the first 99
days
Strong backing by the promoters
Having more than 35 destinations in
India
Good presence in the market due to its
branding and advertising

14.  Quality
 Reputation
 Customer security
 Product performance
 Product features
 Price
 Geo coverage
 Add effects

15. POLITICAL FACTORS :
 Bureaucracy
 No clear policies for state carriers
ECONOMIC FACTORS:
 increasing tax and tariff
 Price depends upon individual firm’s behavior
 International fuel price

16. SOCIAL FACTORS :
 Lack of skilled manpower ( in flight staffs)
 Customers services
 Safety concerns (9/11)
TECHNOLOGICAL FACTORS :
 Night landing facilities
 Operation during winter
 Capital intensive technology

17. Low cost carrier
 Point to point services
 Cheaper product design
 Sales via internet
 Word of mouth marketing