This is a presentation for our Paper Strategic Management at Amity Business School, Noida. The topic covered was the Ongoing crisis in Air India, and the possible ways to work around a solution for it. All aspects of management, including Finance, Operations, Marketing and HR was discussed.
This is a presentation for our Paper Strategic Management at Amity Business School, Noida. The topic covered was the Ongoing crisis in Air India, and the possible ways to work around a solution for it. All aspects of management, including Finance, Operations, Marketing and HR was discussed.
Strategic Mistakes That Led To The Failure Of Kingfisher AirlinesSourav Giri
Industry Overview
Introduction to UB Group & KFA
Industry Analysis Based on Porters Five Forces
Identification of Crisis & Reasons for Failure
Identification & Analysis of Strategic Risks
Critical Mistakes in Decision Making & Strategy
Conclusion
This is the case related to air india, here it is shown that how air india is competing with the other airlines without any good marketing strategy. In this case you will find that air India's customer service in aviation industry. figure and charts would show the financial part of air india.
Another area where Indigo can evaluate diversification is working out value addition for its passengers by offering bundled app driven taxi services for airport pick up and drop. Rather than starting its own app based taxi service, it should tie up with existing players like Uber and Ola. Working on a revenue sharing model rather than owning a subsidiary will enable roll out of highly value driven service for its passengers without any expenditure and also increase its bottom line.
Strategic Mistakes That Led To The Failure Of Kingfisher AirlinesSourav Giri
Industry Overview
Introduction to UB Group & KFA
Industry Analysis Based on Porters Five Forces
Identification of Crisis & Reasons for Failure
Identification & Analysis of Strategic Risks
Critical Mistakes in Decision Making & Strategy
Conclusion
This is the case related to air india, here it is shown that how air india is competing with the other airlines without any good marketing strategy. In this case you will find that air India's customer service in aviation industry. figure and charts would show the financial part of air india.
Another area where Indigo can evaluate diversification is working out value addition for its passengers by offering bundled app driven taxi services for airport pick up and drop. Rather than starting its own app based taxi service, it should tie up with existing players like Uber and Ola. Working on a revenue sharing model rather than owning a subsidiary will enable roll out of highly value driven service for its passengers without any expenditure and also increase its bottom line.
Fotos antiguas de mujeres de Torres (Jaén). Algunas de ellas trabajando. También hay dibujos de sus abuelas, hechos por niños y niñas del CEIP Aznaitín.
Elohim Industrial Sales, Inc. (EISI), an ISO 9001:2008 Certified, Exclusive Distributor of Hager and Euromate in the Philippines.
EISI is a leading Solutions Provider and Systems Integrator of Schneider Electric Automation in the Philippines. EISI also carry the SCHNEIDER ELECTRIC POWER METERS and HARMONICS filter products.
EISI is committed to total quality service. We offer business operations with innovative solutions through conceptualization, design and engineering, project management, testing and implementation, training, calibration and after sales support.
This word file contains the detailed analysis of Pakistan's Airline Industry with perspective to Marketing Concepts such as SWOT Analysis, BCG Matrix, Porter's Generic Strategies and Pest Analysis. The report also contains the Marketing plan for Serene Air International.
RBSA-RR-A Deep Dive Into The Hospital Industry in India.pdfRBSA Advisors
We are delighted to share our research on the Hospital segment in India, primarily focusing on the Performance of Key Hospital Groups including their future growth plans, and recent PE and M&A deals in this segment.
RBSA-RR-Specialty Chemicals-An opportunity for Make in India.pdfRBSA Advisors
These are interesting times for the Specialty Chemicals industry in India, in view of the current global market trends in this sector. The supply chain issues faced by manufacturers around the world, have brought greater momentum to the China +1 theme thereby creating incentives for Indian manufacturers to invest and grow.
RBSA-RR-Industry Valuation Multiples Series 6th Edition.pdfRBSA Advisors
We are delighted to share our “6th Edition of Industry wise Valuation Multiples” for Indian listed corporates. Our report coverage comprises of 13 largest industrial sectors in India.
RBSA-RR-Demystifying Life Insurance Industry in India (1).pdfRBSA Advisors
RBSA Advisors is delighted to share its recent research on the Life Insurance sector in India. Pandemic across the nation had impacted the country's overall financial system. The unprecedented nature of this crisis created difficult circumstances, including economic shutdowns. The year 2020 was a watershed year in the Insurance sector. Insurer were forced to rethink their business operations leading to enormous changes in the industry. Currently, life insurance industry is at crossroad.
Through this report we are demystifying the life insurance industry in India and sharing our views on the industry outlook.
SEBI streamlines the process of Buy-back of securities.pdfRBSA Advisors
With the intent to simplify the Buy-back process of securities, level the playing field for investors, and encourage ease of doing business, the Securities & Exchange Board of India (“SEBI”) has relaxed certain norms in the SEBI (Buy-back of Securities) Regulations, 2018 pursuant to SEBI (Buy-back of Securities) (Amendment) Regulations, 2023. Further, Operational Guidance on Buy-back was issued by SEBI on 8th March 2023. The amended regulation has come into force w.e.f 9th March, 2023.
RBSA-Budget-Finance Bill 2023-Key Proposals.pdfRBSA Advisors
Keeping a people-centric approach, various amendments in individual tax provisions and amendments providing benefits under the new tax-rate regime is a welcome move.
Through this report, we share our views on the prevailing framework/rules under the Income Tax Act, 1961 for determination of Fair Valuation in case of Shares/Securities.
STATATHON: Unleashing the Power of Statistics in a 48-Hour Knowledge Extravag...sameer shah
"Join us for STATATHON, a dynamic 2-day event dedicated to exploring statistical knowledge and its real-world applications. From theory to practice, participants engage in intensive learning sessions, workshops, and challenges, fostering a deeper understanding of statistical methodologies and their significance in various fields."
06-04-2024 - NYC Tech Week - Discussion on Vector Databases, Unstructured Data and AI
Round table discussion of vector databases, unstructured data, ai, big data, real-time, robots and Milvus.
A lively discussion with NJ Gen AI Meetup Lead, Prasad and Procure.FYI's Co-Found
Global Situational Awareness of A.I. and where its headedvikram sood
You can see the future first in San Francisco.
Over the past year, the talk of the town has shifted from $10 billion compute clusters to $100 billion clusters to trillion-dollar clusters. Every six months another zero is added to the boardroom plans. Behind the scenes, there’s a fierce scramble to secure every power contract still available for the rest of the decade, every voltage transformer that can possibly be procured. American big business is gearing up to pour trillions of dollars into a long-unseen mobilization of American industrial might. By the end of the decade, American electricity production will have grown tens of percent; from the shale fields of Pennsylvania to the solar farms of Nevada, hundreds of millions of GPUs will hum.
The AGI race has begun. We are building machines that can think and reason. By 2025/26, these machines will outpace college graduates. By the end of the decade, they will be smarter than you or I; we will have superintelligence, in the true sense of the word. Along the way, national security forces not seen in half a century will be un-leashed, and before long, The Project will be on. If we’re lucky, we’ll be in an all-out race with the CCP; if we’re unlucky, an all-out war.
Everyone is now talking about AI, but few have the faintest glimmer of what is about to hit them. Nvidia analysts still think 2024 might be close to the peak. Mainstream pundits are stuck on the wilful blindness of “it’s just predicting the next word”. They see only hype and business-as-usual; at most they entertain another internet-scale technological change.
Before long, the world will wake up. But right now, there are perhaps a few hundred people, most of them in San Francisco and the AI labs, that have situational awareness. Through whatever peculiar forces of fate, I have found myself amongst them. A few years ago, these people were derided as crazy—but they trusted the trendlines, which allowed them to correctly predict the AI advances of the past few years. Whether these people are also right about the next few years remains to be seen. But these are very smart people—the smartest people I have ever met—and they are the ones building this technology. Perhaps they will be an odd footnote in history, or perhaps they will go down in history like Szilard and Oppenheimer and Teller. If they are seeing the future even close to correctly, we are in for a wild ride.
Let me tell you what we see.
06-04-2024 - NYC Tech Week - Discussion on Vector Databases, Unstructured Data and AI
Discussion on Vector Databases, Unstructured Data and AI
https://www.meetup.com/unstructured-data-meetup-new-york/
This meetup is for people working in unstructured data. Speakers will come present about related topics such as vector databases, LLMs, and managing data at scale. The intended audience of this group includes roles like machine learning engineers, data scientists, data engineers, software engineers, and PMs.This meetup was formerly Milvus Meetup, and is sponsored by Zilliz maintainers of Milvus.
Adjusting OpenMP PageRank : SHORT REPORT / NOTESSubhajit Sahu
For massive graphs that fit in RAM, but not in GPU memory, it is possible to take
advantage of a shared memory system with multiple CPUs, each with multiple cores, to
accelerate pagerank computation. If the NUMA architecture of the system is properly taken
into account with good vertex partitioning, the speedup can be significant. To take steps in
this direction, experiments are conducted to implement pagerank in OpenMP using two
different approaches, uniform and hybrid. The uniform approach runs all primitives required
for pagerank in OpenMP mode (with multiple threads). On the other hand, the hybrid
approach runs certain primitives in sequential mode (i.e., sumAt, multiply).
Enhanced Enterprise Intelligence with your personal AI Data Copilot.pdfGetInData
Recently we have observed the rise of open-source Large Language Models (LLMs) that are community-driven or developed by the AI market leaders, such as Meta (Llama3), Databricks (DBRX) and Snowflake (Arctic). On the other hand, there is a growth in interest in specialized, carefully fine-tuned yet relatively small models that can efficiently assist programmers in day-to-day tasks. Finally, Retrieval-Augmented Generation (RAG) architectures have gained a lot of traction as the preferred approach for LLMs context and prompt augmentation for building conversational SQL data copilots, code copilots and chatbots.
In this presentation, we will show how we built upon these three concepts a robust Data Copilot that can help to democratize access to company data assets and boost performance of everyone working with data platforms.
Why do we need yet another (open-source ) Copilot?
How can we build one?
Architecture and evaluation
Adjusting primitives for graph : SHORT REPORT / NOTESSubhajit Sahu
Graph algorithms, like PageRank Compressed Sparse Row (CSR) is an adjacency-list based graph representation that is
Multiply with different modes (map)
1. Performance of sequential execution based vs OpenMP based vector multiply.
2. Comparing various launch configs for CUDA based vector multiply.
Sum with different storage types (reduce)
1. Performance of vector element sum using float vs bfloat16 as the storage type.
Sum with different modes (reduce)
1. Performance of sequential execution based vs OpenMP based vector element sum.
2. Performance of memcpy vs in-place based CUDA based vector element sum.
3. Comparing various launch configs for CUDA based vector element sum (memcpy).
4. Comparing various launch configs for CUDA based vector element sum (in-place).
Sum with in-place strategies of CUDA mode (reduce)
1. Comparing various launch configs for CUDA based vector element sum (in-place).
Techniques to optimize the pagerank algorithm usually fall in two categories. One is to try reducing the work per iteration, and the other is to try reducing the number of iterations. These goals are often at odds with one another. Skipping computation on vertices which have already converged has the potential to save iteration time. Skipping in-identical vertices, with the same in-links, helps reduce duplicate computations and thus could help reduce iteration time. Road networks often have chains which can be short-circuited before pagerank computation to improve performance. Final ranks of chain nodes can be easily calculated. This could reduce both the iteration time, and the number of iterations. If a graph has no dangling nodes, pagerank of each strongly connected component can be computed in topological order. This could help reduce the iteration time, no. of iterations, and also enable multi-iteration concurrency in pagerank computation. The combination of all of the above methods is the STICD algorithm. [sticd] For dynamic graphs, unchanged components whose ranks are unaffected can be skipped altogether.
Levelwise PageRank with Loop-Based Dead End Handling Strategy : SHORT REPORT ...Subhajit Sahu
Abstract — Levelwise PageRank is an alternative method of PageRank computation which decomposes the input graph into a directed acyclic block-graph of strongly connected components, and processes them in topological order, one level at a time. This enables calculation for ranks in a distributed fashion without per-iteration communication, unlike the standard method where all vertices are processed in each iteration. It however comes with a precondition of the absence of dead ends in the input graph. Here, the native non-distributed performance of Levelwise PageRank was compared against Monolithic PageRank on a CPU as well as a GPU. To ensure a fair comparison, Monolithic PageRank was also performed on a graph where vertices were split by components. Results indicate that Levelwise PageRank is about as fast as Monolithic PageRank on the CPU, but quite a bit slower on the GPU. Slowdown on the GPU is likely caused by a large submission of small workloads, and expected to be non-issue when the computation is performed on massive graphs.
1. SpiceJet—Hope is in the air?
A Case Study On Revival of SpiceJet
Airlines
June 2015
RBSA
Research Initiative
2. SpiceJet—Hope is in the air? Page 2 of 16
Table of Contents
Sr. No. Particulars
1. Executive Summary
2. Background of the Indian Aviation Industry
3. SpiceJet – The Beginning
4. SpiceJet Share Price Performance
5. Turbulent Times
6. Serious Fleet Issues
7. Deep Discounts Backfired
8. SpiceJet Deal
9. Restructuring Plans
10. SpiceJet’s Q4 2015 Performance Update
11. Cost Breakdown Analysis of Q4 2015
12. New Avatar
3. SpiceJet—Hope is in the air? Page 3 of 16
On October 30, 2014, at the Kempegowda International Airport
in Bengaluru, passengers trying to board the early-morning
Chennai flight found no staff at the SpiceJet counters. They had
gone on a flash strike for non-payment of dues. It was only
hours later that an airline official came to inform the passengers
that their flight would take off in the afternoon. By December
2014 , the airline announced that it was cancelling over 1,800
domestic flights — on average around 80 a day — during the
month.
“If you want to be a Millionaire,
start with a billion dollars and
launch a new airline”–Richard
Branson
1. Executive Summary
It celebrated a culture of exuberance and flamboyance. It’s cabin
crew celebrated Holi by dancing on board. The airline introduced
'weekend uniforms' for employees— colourful tops paired with
jeans — and played rock songs on flights. SpiceJet was India’s
second most favourite airline.
Come 2014 – delayed flights, reschedulement at short notices
and disgruntled flyers at counters had become symbolic with
SpiceJet. The airline was marred by ineffective leadership,
policy decisions, rising fuel costs, cash crunch and
accumulated losses. No one - the industry, the government,
the flying public, wanted to see another airline go the
Kingfisher way.
In May 2015, the airline swung to profit in the fourth
quarter, beating analysts estimates, after six straight
quarters of losses. Is Ajay Singh the airline’s saviour?
Anybody’s guess!
Not so long ago, in 2012, the airline
bagged the prestigious India’s
International Low Cost Carrier of the Year
by Travel Agents Association of India.
Cometh the hour cometh the man! In
January 2015, Ajay Singh, SpiceJet’s co-
founder and former promoter, acquired the
ownership and management control of the
airline from Kalanithi Maran and his
associates.
4. SpiceJet—Hope is in the air? Page 4 of 16
2. Background of the Indian Aviation Industry
Indian Aviation Industry is one of the
fastest growing airline industries in the
world. The last few years have been
without doubt some of the most
challenging in India’s aviation history. Over-
capacity, high input costs, intense
competition and a negative policy and
regulatory environment conspired to
threaten the viability of virtually the entire
aviation value chain. India’s airlines alone
have lost more than USD10 billion
combined since FY2009. Airline debt stands
at around USD11 billion, rising to close to
USD14 billion if liabilities to vendors are
included. At an industry level airline debt is
now equivalent to more than 100% of
airline revenue.
Aviation experts feel that India has the
potential to become the third largest
aviation market by 2020 and the largest by
2030. There is large untapped potential for
growth due to the fact that access to
aviation is still a dream for nearly 99.5% of
its population.
Number game
Size of the industry There are about
449 airports and
1091 registered
aircrafts in India
Today
Output per annum Growth rate of 18%
per annum
Airport needed by
2020
~500 airports
Employees needed
by 2020
~350,000 people
Key challenges • Volatility in fuel
prices
• Safety issues
• National policy
• Infrastructure
• Skilled labour
• Company
specific
challenges
37%
24%
18%
9%
9%
1%1% 1%
Indigo Jet Airways
Air India SpiceJet
Go Air Air Costa
Air Asia Vistara
Current Market
Share 2015
Source: DGCA
5. SpiceJet—Hope is in the air? Page 5 of 16
SpiceJet is an Indian low-cost airline (a no-frills, discount or budget carrier airline) that generally offers low fares in
exchange for eliminating many traditional passenger services.
As of March 2015, it is country's fourth largest airline by domestic passenger share (DGCA, March 2015).
Operates more than 270 daily flights to 41 destinations, including 34 Indian and 7 international cities
Uses a fleet of Boeing 737 Next Generation and Bombardier Dash 8 Q400 aircraft.
Began services in May 2005 and bookings were opened on 18th May, 2005 and the first flight was operated from Delhi
to Mumbai on 24th May, 2005.
Marked it’s entry in the Indian skies with INR 99 fares for the first 99 days with 9,000 seats available at this rate.
In 2004, Ajay Singh along with NRI business family Kansagras, with investment interest in Africa, infused funds and
leased 3 Boeings 737-800 aircrafts and renamed it SpiceJet.
By 2008, SpiceJet became India's second-largest low-cost airline in terms of market share and was the most profitable
airline in the country and the only profitable airline among NSE/BSE listed companies.
In June 2010, Indian media baron Kalanidhi Maran acquired 37.7% stake in Spicejet.
In 2012, Spicejet suffered loss of Rs 390 million owing to increase in global crude prices.
Kalanithi Maran increased his stake in Spicejet by investing Rs 1 billion in the airline. The airline returned to making
profits at the end of 2012.
3. SpiceJet – The Beginning
6. SpiceJet—Hope is in the air? Page 6 of 16
0
20
40
60
80
100
120
Jul/00 Jul/03 Jul/06 Jul/09 Jun/12 Jun/15
IndexedtoSpiceJetSharePrice
SpiceJet BSE Sensex
4. SpiceJet Share Price Performance
130%
20-Feb-15: SpiceJet's existing
promoters transfer 58.46% stake
to Ajay Singh
9-Jan-15: Plans to raise
first tranche of Rs 1,200
crore funds through US
investors
09-Dec-14: Spicejet has cancelled
over 1,800 flights. It has reduced
the size of its fleet to 22-24 planes
as a part of restructuring
Company's business
523%
31-Oct-14-Company announced
the appointment of Sanjiv
Kapoor as COO. Neil Raymond
Mills resigned as Company’s CEO
16-Nov-10: Kalanithi Maran further acquired
38.66% stake in the Company jointly with KAL
Airways. Company announced the appointment
of Neil Raymond Mills its CEO
14-Jun-10: Kalanithi Maran acquired 37.75%
stake in the Company, from Royal Holdings
Services and WL Ross entities at a price of
around Rs 47 per share
25-May-10:
SpiceJet reported
FY 10 results with
net profit of Rs
61.45 crores
against a loss of Rs
352.6 crores
Source : Ace Equity
SpiceJet has
underperformed BSE
Sensex and has given
a return of 130%
against a market
return of 523% since
2000.
7. SpiceJet—Hope is in the air? Page 7 of 16
5. Turbulent Times
Jun 2013 May 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014
Airline decided
to defer
statutory dues,
hoping to pay
from outside
investor
Airline posted a
record 5-fold rise
in loss to Rs.1,003
Crore in FY 2014
SpiceJet rose to
#2 in market
share
Recorded a
loss of Rs
124 crore in
quarter
ended June
Airline closed
to signing a
deal with PE
firm TPG
Capital and
Indigo Partners
to infuse funds
CBI filed
charges of
criminal
misconduct
against
SpiceJet
promoter in
the Aircel –
Marxis deal
TPG Capital and
Indigo Partners
walkaaway
owing to CBI
charges
Outflow
increased
related to
deferred tax,
mounting losses;
airline diverts
payments
Lessors
panic, force
airline to
return
planes
SpiceJet
reported
fifth
straight
quarterly
loss
SpiceJet
delayed
salary of
employees
and staff,
first time in
9 years
SpiceJet paid 85% of
salaries
DGCA prevents
airline from selling
tickets beyond 30
days
SpiceJet
management tells
DGCA it wants to
suspend operations
Aviation minister
asks oil companies
and airport
operators to be
lenient on
SpiceJet’s
payments
Airline suspends
flights nearly for a
day. Frontline staff
confront angry
customers
Jan 2015 Mar 2015
The board of directors
of SpiceJet transferred
control of the airline to
Ajay Singh.
Reported Q4 2015
net profit of
Rs.22.51 crore in
Q4 of FY 15
8. SpiceJet—Hope is in the air? Page 8 of 16
6. Serious Fleet Issues
• In 2010, SpiceJet decided to place orders for Bombardier
Q400 aircraft, when most airlines in the country had
Airbuses or Boeings to have economies of scale.
• The price of the 15 Bombardier Q400s was $450 million,
the first of which joined the fleet in 2011.
• SpiceJet’s rationale to opt for the 70-seater Bombardier
Q400’s was that it would widen its network in smaller
towns and cities.
• But the lack of support centres in India meant that
Bombardiers had to be flown to the Netherlands for
maintenance checks.
• Thus, SpiceJet’s maintenance costs ballooned to over 50 %
. It started impacting its bottom line.
• Also total debt soared from Rs. 55 crore in fiscal 2011 to
Rs. 855 crore in fiscal 2012, when the Bombardier was
inducted. This doubled to Rs. 1,678 crore in fiscal 2013.
• To add fuel to SpiceJet’s problems the price of aviation
turbine fuel went up by almost a half.
2,880
3,961
5,616
6,308
5,173
103
-605
-191
-1,003 -687
-2000
0
2000
4000
6000
8000
Mar/11 Mar/12 Mar/13 Mar/14 Mar/15
INR(Crores)
Revenue PAT
Source : SpiceJet
Fleet Type vs PAT
29 35 41 38 18
0 12 15 15 15
No of
Boeing
No of
Bombardier
9. SpiceJet—Hope is in the air? Page 9 of 16
• It's all about having the money in
hand. A rupee today is worth more
than a rupee tomorrow. However,
on the flipside, repeated sales build
an unstable ecosystem.
7. Deep Discounts Backfired
Booking ahead
of time
Cash flow
management
Retaining
market share
• No airline wants its flights to fly
vacant. It's important to note most
would never offer all its seats on
sale.
• Airlines are fighting tooth and nail
to grab passengers. So while one
airline offers a sale, the other
doesn't want to be left behind.
“ Nobody wants to
lose out. But when
everybody starts
discounting tickets,
everybody loses. It's
a race to the bottom
– Sanjiv Kapoor,COO,
SpiceJet
”
10. SpiceJet—Hope is in the air? Page 10 of 16
8. SpiceJet Deal
• On 15th January 2015, the board of directors of SpiceJet
transferred control of the airline to Ajay Singh.
• Kalanidhi Maran transfered SpiceJet stake to Ajay Singh via
‘Scheme of Reconstruction and Revival for the takeover of
ownership, management and control of SpiceJet Limited’.
• Three issues of public importance were unknown–
Scheme Details were not disclosed,
Acquisition price not disclosed and
Open Offer was exempted
• According to RBSA analysis -
“It's a welcome development. Failure of an
airline with 17% market share is the last thing
our beleaguered aviation sector needs.
SpiceJet's revival is good for passengers,
employees, lenders, suppliers and the industry
as a whole,”
-Amber Dubey, Partner and India
head of aerospace and defence, KPMG
“The government of India wanted to see the
airline survive. The failure of an airline is fairly
visible to the world. When an airline dies, the
whole world gets to know and that is very bad
publicity for the economy of any country,”
-Ajay Singh, Chairman, SpiceJet
In crores
No. of shares (58.45%) 35.04
Share price as of 15th Jan 2015 18.65
Equity Value 654
(+) Debt as of 30th Sep 2014 2,611
(-) Cash as of 30th Sep 2014 9
Enterprise Value 3,255
11. SpiceJet—Hope is in the air? Page 11 of 16
Time
Performance
•Brought down the outlier costs.
•Shut down some airports and curtailed the network to get back to low-cost model which is
fewer stations and higher frequency to these stations.
•In process of renegotiating debt-restructuring plans, have amended the contracts.
Debt
Clearance
•Cleared all the statutory debts, bad debt, employee salaries and payments of oil companies.
•Cleared debts of Lessors and are in the process of paying large creditors.
•Cash flow has become much stronger than anticipated.
Fleet
and Staff
•To hire about 100 pilots, 50 commanders and 200-odd cabin crew and flight engineers.
•Plans to add six to seven new aircrafts by FY 16.
•Has trimmed expensive top management that were drawing salary of Rs 2 crore per annum.
•To give opportunity of joining the Company to those who had either quit or had been laid off.
9. Restructuring Plans
“They are back in Business. Competition is always good”-Phee
Teik Yeoh, CEO, Vistara
12. SpiceJet—Hope is in the air? Page 12 of 16
10. SpiceJet’s Q4 2015 Performance Update
Flights per
day
passengers
carried
Load Factor
Cargo per
flight
Average
Flight
Length
Capacity
Q4'2015 -43% -37% 13% -8% -9% -52%
-43%
-37%
13%
-8% -9%
-52%
-100%
-75%
-50%
-25%
0%
25%
50%
Change of Q4'2015 over Q4'2014 performance
“SpiceJet has now come out the other side of the
darkness a more agile, stronger and more adept
airline as a result of the change…If SpiceJet
continues to gnaw away at costs, especially in a
low fuel price environment, then it has the
prospects of financial strength to position it for
growth”—Saj Ahmad, chief analyst at
StrategicAero Research
• SpiceJet’s performance in Q4 FY’15 was promising.
• The board of directors transferred control of the airline to
Ajay Singh.
• Active fleet size was reduced 50% y-o-y to 17 Boeing 737s
and 13 Q400s.
• After seven quarters of losses, SpiceJet reported a net
profit of Rs.22.51 crore in Q4 of FY 15 helped by a Rs 650-
crore funding by a new promoter, renegotiated contracts
with its vendors and provisioning for re-delivery expenses.
• It also includes an extraordinary item, Rs.61 crore insurance
claim received for the Q400 that was written off after an
accident at Hubli, Karnataka.
• Airline had reported a net loss of Rs.321.5 crore in Q4 of
FY14.
• Despite profit, the airline's EBIT dropped to 50% y-o-y to Rs
786.32 crore in the reporting quarter compared with Rs
1,573.75 crore a year earlier
13. SpiceJet—Hope is in the air? Page 13 of 16
Income Aircraft Fuel
Aircraft Lease
Rentals
Airport Charges Aircraft Mntc Other Op Costs Empl Benefits Dep Exp Other Exp
Q4'15 3% -31% -18% 18% 3% 17% 63% 48% -5%
3%
-31%
-18%
18%
3%
17%
63%
48%
-5%
-60%
-40%
-20%
0%
20%
40%
60%
80%
Change in Income and Costs per ASK, Q4'15 v/s Q4'14
11. Cost Breakdown Analysis of Q4 2015
• Revenue increased 3% y-o-y to Rs 4.15/seat-km.
• Implies that the increase in load factors had a positive impact on unit revenues.
Income
Costs
• D&A costs increased 48% y-o-y o INR 0.16/seat-km mainly due to owned Q400s.
• Airport charges increased 18% y-o-y due to reduced flight lengths.
• Aircraft maintenance costs went up by 3%.
• Other operating costs increased by 17% y-o-y to Rs 0.16/seat-km.
• Other expenses, which includes administrative expenses decreased by 5%.
• Lease rentals per unit decreased by 18% y-o-y, owing to higher utilization of aircraft which diluted this fixed cost.
• Aircraft fuel costs went down 31% to Rs 1.52/seat-km largely due to the fall of ATF prices.
• Employee costs per ASK shot up 63% to Rs 0.57/seat-km as staff salaries were revised upward. ASK Available Seat
Kilometers (ASK) captures the total flight passenger capacity of an airline in kilometers.
14. SpiceJet—Hope is in the air? Page 14 of 16
12. New Avatar
1. New Slogan and Brand : Unveiling of a new brand look and
a new slogan 'SpiceJet is different. It is Red. Hot. Spicy‘ to
mark the airline’s 10th anniversary.
2. SpiceJet Mobile App : The airline also launched a new
mobile application and expects to see a meaningful jump in
bookings through it.
3. Bag Out First : A service that ensures your baggage will be
the “on Priority”. At a nominal cost of Rs 100/- per bag, you
may choose to enjoy this benefit.
4. Priority Check-In : A service that provides you a hassle free
and comfortable check-in experience at the airport on
payment of INR 200 only.
5. Spice Assurance : A promise that flights will fly to a
destination on time. This guarantee entitles you to a
voucher worth Rs 500 if your flight is delayed between 60 –
119 minutes and a Rs 1000 voucher for a delay beyond 120
minutes.
6. SpiceMax : Enjoy significantly extra legroom on-board,
complimentary meal and beverage, priority baggage
handling and priority check-in at dedicated SpiceMAX
counters at the airport for a modest add-on fee starting at
Rs.500 to Rs.1000 depending on aircraft and flight length.
7. Colorful Weekends with SpiceJet : Inspired by the concept
of "Casual Fridays" in corporate offices, the airline have
designed crew’s colorful weekend attire for more cheer in
the air.
8. IRCTC partners with SpiceJet : Railways have entered into a
tie-up with SpiceJet. It enables a train traveller whose ticket
is wait-listed to cancel the train ticket and instead get on to
a flight by paying some incremental fee.
15. SpiceJet—Hope is in the air? Page 15 of 16
Disclaimer
The purpose of this Document is to provide interested parties with information that may be useful to them in understanding the
content related to this document. This Document includes statements which may reflect various assumptions and assessments
arrived at by the RBSA Analysts. Such assumptions, assessments and statements do not purport to contain all the information that
each interested party may require. This Document may not be appropriate for all Persons, and it is not possible for the RBSA, its
employees or advisors to consider the investment objectives, financial situation and particular needs of each party who reads or
uses this Document.
The assumptions, assessments, statements and information contained in the Document may not be complete, accurate, adequate
or correct. Each interested party should, therefore, conduct its own investigations and analysis and should check the accuracy,
adequacy, correctness, reliability and completeness of the assumptions, assessments, statements and information contained in
this Document and obtain independent advice from appropriate sources.
Information provided in this Document has been collated from several sources some of which may depend upon interpretation of
Applicable Law. The information given is not intended to be an exhaustive account of statutory requirements and should not be
regarded as complete. RBSA accepts no responsibility for the accuracy or otherwise for any statement contained in this document.
RBSA, its employees and advisors make no representation or warranty and shall have no liability to any Person under any law,
statute, rules or regulations or tort, principles of restitution or unjust enrichment or otherwise for any loss, damages, cost or
expense which may arise from or be incurred or suffered on account of anything contained in this Document or otherwise,
including the accuracy, adequacy, correctness, completeness or reliability of the Document and any assessment, assumption,
statement or information contained therein or deemed to form part of this Document.
RBSA also accepts no liability of any nature whether resulting from negligence or otherwise howsoever caused arising from
reliance of any person upon the statements contained in this Document.