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Spice Jet

Flying for everyone

Spice Jet Flying for everyone

Introduction

Introduction

Introduction

A low Cost Airline

Began services in May 2005 to serve passenger travel

Key executives :

Introduction  A low Cost Airline  Began services in May 2005 to serve passenger travel

Sanjay Aggarwal (CEO) J.S. Dhillon (Exec. VP) Samyukth Shridharan (CCO)

Introduction  A low Cost Airline  Began services in May 2005 to serve passenger travel

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.

History  Earlier Known as Royal Airways  Marked their entry with Rs 99 fares for

Fleet

The Spice Jet fleet consists of the following

aircraft as of February 2009

Aircraft Boeing

In services

16

Order

9

Passenger 189

Domestic Routes

737-800

Boeing

5

-

(Economy) 212

short haul

Domestic

737-900 ER

Total

21

9

 

short haul

Fleet  The Spice Jet fleet consists of the following aircraft as of February 2009 

Fleet

Fleet

Market Share & Competitor

Market Share & Competitor

Major 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

fleet

to

add

6

aircrafts per year to

the

Strategy  Fare as low as Rs 99/-  Consolidation eased competition & gave pricing power

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

price

of fuel surcharge

due

to

high

ATF

Congestion surcharge due to congestion at

busy airports

Strategy  4 planes will be B737-900ER type that can carry 215 passengers as compared to

Classical LCC Model

Use of selected aircraft type with single class

configuration

Use of Ancillary services

Rational fleet Utilization

Sale & lease back agreement

Classical LCC Model  Use of selected aircraft type with single class configuration  Use of

Ancillary Revenue Stream

Ancillary Revenue Stream In flight Catering Selling Insurance Excess Baggage Sources of Ancillary revenue Providing Hotels

In flight Catering

Ancillary Revenue Stream In flight Catering Selling Insurance Excess Baggage Sources of Ancillary revenue Providing Hotels

Selling Insurance

Ancillary Revenue Stream In flight Catering Selling Insurance Excess Baggage Sources of Ancillary revenue Providing Hotels

Excess Baggage

Sources of Ancillary revenue
Sources of Ancillary revenue
Ancillary Revenue Stream In flight Catering Selling Insurance Excess Baggage Sources of Ancillary revenue Providing Hotels

Providing Hotels

Car Rentals

Ancillary Revenue Stream In flight Catering Selling Insurance Excess Baggage Sources of Ancillary revenue Providing Hotels

Couriers & Cargo

Ancillary Revenue Stream In flight Catering Selling Insurance Excess Baggage Sources of Ancillary revenue Providing Hotels
Ancillary Revenue Stream In flight Catering Selling Insurance Excess Baggage Sources of Ancillary revenue Providing Hotels

Promotional offers Selling space for advertise

Ancillary Revenue Stream In flight Catering Selling Insurance Excess Baggage Sources of Ancillary revenue Providing Hotels

Stock prices in last one year

Stock prices in last one year
Balance Sheet
Balance Sheet

Risks & concerns

Infrastructure constraints

Entry of new players

Lower then expected improvements in fares

Increase in ATF prices

Risks & concerns  Infrastructure constraints  Entry of new players  Lower then expected improvements

Future Plans

20 New Boeing Aircrafts to fleet

New route networks

Planning to fly abroad to South Asian countries

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

Thank you

Thank you