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SpiceJet

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SpiceJet

SpiceJet Chairman, Kalanithi Maran
SpiceJet Chairman, Kalanithi Maran
IATA Code
SG
ICAO Code
SEJ
Corporate Address
319, Udyog Vihar,
Phase IV,
Gurgaon,
Haryana,
India
Website
http://www.spicejet.com
Main hub
Delhi Indira Gandhi International Airport
Country
India
Business model
Low Cost Carrier

SpiceJet is an Indian low cost carrier based at Indira Gandhi International Airport, New Delhi. SpiceJet one of India's largest airlines, serving domestic destinations across India. The airline commenced international operations in Oct-2010 and now operates service to Nepal and Sri Lanka.

Location of SpiceJet main hub (Delhi Indira Gandhi International Airport)

Source: CAPA - Centre for Aviation and Google Maps

SpiceJet share price

Time period:
Source: CAPA - Centre for Aviation and Rediff


 
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533 total articles

6,123 total articles

India domestic passenger growth slows to 8% in Dec-2011; 2012 growth to slow from 16.6% in 2011

31-Jan-12 9:44 AM

India’s domestic air passenger growth slowed to 8% in Dec-2011 to less than half the pace of growth experienced in calendar 2011 and down from the 17-22% growth rates seen between Jun-2011 and Oct-2011. While passenger numbers in India’s domestic market have seen growth now for 31 consecutive months, the result for Dec-2011 marks the end of 16 consecutive months of double-digit growth. This single-digit growth in the peak month of Dec-2011 (to 5.63 million passengers) is a sign that slowing economic growth is affecting air travel and reflects impending capacity caution by some of the nation’s largest players.

India’s domestic passenger numbers increased 16.6% to 60.7 million passengers in 2011, averaging out at 5.1 million passengers per month, and up 74% from 2006 levels. The largest stand-alone carrier was IndiGo with a 19.5% market share, with IndiGo also the fastest growing carrier in 2011.

IndiGo is largest domestic carrier in India, one of the world’s fastest growth aviation market

22-Nov-11 10:08 AM

IndiGo was the largest single carrier in the Indian domestic market in Oct-2011, ahead of Jet Airways, with struggling Kingfisher Airlines falling to third place. SpiceJet emerged as the fastest growing carrier in the month, while Kingfisher was the slowest growing carrier in the market. With up to 55 daily service cancellations this month, Kingfisher will likely continue to see passenger number and market share losses in the coming months. This could result in slowing growth in Nov-2011 and Dec-2011.

India is currently the fastest growing domestic market in the world after Chile, with growth expected to continue despite the current financial challenges experienced by key players in the Indian aviation market. India’s domestic air travel market continued to show impressive growth in the first 10 months of 2011, with passenger numbers increasing 18.3% to 49.6 million passengers, averaging out at 4.96 million passengers per month.

SpiceJet reports 2Q loss in a structurally challenged India domestic market

20-Nov-11 11:26 PM

Negatively impacted by high fuel prices, a weakening rupee and an “irrational” pricing environment in the domestic Indian market, SpiceJet reported an INR2.4 billion (USD48.0 million) net loss and loss before tax in the three months ended 30-Sep-2011 (2QFY2012). This marked a large and negative turnaround from profits of INR101.1 million (USD2.5 million) and INR126.3 million (USD2.0 million) respectively in 2QFY2011. The record quarterly loss occurred despite a 22% increase in revenue to INR76.6 billion (USD153 million) and came amid weakening yields in the pressured domestic Indian market.

SpiceJet’s results are indicative of the Indian aviation industry as a whole, which is currently heavily unprofitable and facing considerable structure challenges. CEO Neil Mills stated “the industry as well as SpiceJet are struggling for the past 6-8 months because of high crude prices, a weak rupee and irrational pricing from one of our competitors”. In the highly-competitive, yet rapidly-expanding markets, fares are being sold below cost in recent months, while airlines’ costs bases have increased, creating significant pressures on yields and profitability.

Indian airlines turn their attention to regional market

11-Oct-11 4:57 PM

With the second phase of growth in Indian aviation expected to come from Tier-II and Tier-III cities, almost all domestic airlines are looking to connect these smaller cities for expansion. The regional market is currently under-penetrated and demand is growing at nearly double the pace at the metros amid escalating disposable incomes and economic growth. Airports Authority of India (AAI) expects air traffic from non-metro airports to rise to 45% of total air traffic in India in the next few years, up from 30% at present.   

To support this regional growth, greenfield airport development is occurring at Tier-II and Tier-III cities. There are currently 14 approved greenfield airports projects in India, 13 of which are in regional centres. The only exception is the much-delayed Navi Mumbai Airport. The Government has also launched a plan to develop an indigenous-manufactured aircraft to support continued expansion in this arena.

Foreign airline competition impacts Air India; Indian LCCs expand internationally

10-Oct-11 8:00 AM

Nearly one-third of the 32 million international passengers travelling to/from India in 2009/10 travelled on international carriers, leveraging sixth freedom rights, with only a third of current weekly seats and ASKs deployed international from India being operated by Indian carriers. Carriers such as Emirates, Lufthansa, British Airways, Qatar Airways and Singapore Airlines have successfully expanded in the Indian market, often at the expense of local carriers, and offering onward connections via their respective hubs to destinations in US and Europe, currently underserved by the local airlines.

In the Comptroller and Auditor General of India's (CAG) report on Air India released in Sep-2011, it was noted the percentage of sixth freedom carriage in 2009/10 of total passengers carried was as high as 59% for Emirates, 78% for Qatar Airlines, 87% for Lufthansa, 49% for Singapore Airlines and 61% for British Airways. These five carriers together hold a 23.4% capacity (ASKs) share of international services to/from India.

India is world’s fastest growing aviation market as double-digit domestic growth continues

29-Sep-11 2:40 PM

The Indian market continues to be seen as an area of "huge opportunity and huge potential”, IATA CEO and Director General, Tony Tyler said upon the release of the revised full-year financial forecast this month, adding that India is the fastest growing aviation market in the world at present, followed by Brazil, driven by rapid domestic growth.

However, IATA warned that infrastructure and taxation woes could hurt the industry. “There are some issues in India, particularly in infrastructure and so on, which are possibly a problem and constraint for the industry there. We encourage the Government to make the necessary investment. But the potential for these markets is enormous,” Mr Tyler said. While noting the Airports Economic Regulatory Authority (AERA) had a “critical role to play in bringing much needed regulation to this area”, Mr Tyler expressed concern about the “high levels of taxation” in the country as well as other charges paid by international carriers at Indian airports.

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