SpiceJet plans more flights, tie-ups with hotels

Our Bureau Pune, Sept 21 Additional flights in its existing routes, package deals with the hospitality segment and may be a foray into international routes. This is the roadmap that low cost airline SpiceJet has chalked out for itself for the current year. Talking to presspersons, Mr Kamal Hingorani, VicePresident, Marketing and Planning, SpiceJet, said October would see the airline starting flights from Pune to Chennai, Hyderabad and Ahmedabad. He said Pune-Chennai would be daily direct flights, PuneHyderabad (except Tuesday) and Pune-Ahmedabad would be every Tuesday. He said there would be four departures and four arrivals. He said the inaugural fares would be Rs 1,699 for the Pune-Chennai route and Rs 799 for the PuneHyderabad route, excluding taxes. The Pune-Ahmedabad route was a relaunch as the airline had discontinued it as it had been a night slot. The airline also plans flights from Chennai and Kolkata to Port Blair. There are also plans to connect Pune to Kochi and Goa. These flights would be launched after the Pune airport resurfacing was completed, expected around March 2008. Mr Hingorani said the airline had reduced its flights on the Delhi-Mumbai route from six to one. Mr Hingorani said the airline is in talks with the hospitality segment in Goa and Kochi. SpiceJet plans to tie-up with three- and four-star hotels. Mr Hingorani said currently the

SpiceJet has decided to go against the herd. 4Ps B&M: How important is it for SpiceJet to build a brand and what are the challenges related to it considering the current turmoil in the sector? AS: SpiceJet was launched as a carrier that always aimed to provide safe. He said that these would be point-topoint flights. he said. Pune and Coimbatore as there was demand from these locations. He said the airline was not targeting outward bound flights from Delhi or Mumbai but from the tier II cities such as Ahmedabad. Anish Srikrishna. He said the airline has identified West Asia and South East Asia to kickstart its international operations. Kuala Lumpur and Singapore while the foremost location in West Asia would be Dubai. The ... More Stories on : Airlines | Strategy Article E-Mail :: Comment :: Syndication :: Printer Friendly Page At a time when most of the full-service carriers have gate crashed into the supposedly feasible low-cost model.airline was only targeting the stand-alone hotels in these cities for now. He said the airline would be bringing in the 737-900 ER (extended range) into its fold and the first aircraft would join its fleet in November 2007 and the second one by end of December. Marketing. VP. Sr. He said the locations in South East Asia would probably be Bangkok. comfortable and hassle-free air travel to its travellers. SpiceJet. These packages are expected to be launched in three months. highlights the airlines’ differentiated positioning. International flights Mr Hingorani said the airline was awaiting Government’s approval for beginning its international flights. value-for-money.

All these positive experiences keep the brand alive and fresh in the minds of our travellers. 4Ps B&M: Is your latest ‘Get More When You Fly’ campaign in line to highlight the same? AS: Our latest campaign definitely highlights SpiceJet’s unique value offerings for our fliers. When we say ‘Get more. it is important that we expand the brand’s reach and appeal to our prospective target audience. The challenge has been to connect with our audience and position the SpiceJet brand as one that offers more than others in the business. apart from providing low fares to the customers. waiver for sports kits and even selling hot tea and coffee in flight at 30. And to achieve that.’ we mean that we offer more intangible services to our customers like providing complimentary supervision for minors travelling alone.brand’s rapid growth over the first four years since it took off has been built on excellent customer experiences and positive word-of-mouth.000 feet at a very reasonable price of Rs.20. But now that we are doing well and growing. which have threatened to commoditise the brands. allowing web check-in without any extra cost. However. we are not only providing a safe. 4Ps B&M: What is the marketing mix adopted by SpiceJet to gain maximum reach for its marketing initiatives? . modern and young fleet who deliver services in a more efficient and friendly manner with on-time service. Thus. The idea is to develop a brand that delivers value beyond the price point. savings on return fares. such kind of positioning definitely cuts through the clutter in a sector that is driven by competitive pricing. 4Ps B&M: When at a time most of the full-service carriers are moving into the low-cost and low-fare business model. but are also committed to listen to our customers so that we offer experiences that they value. et al. we want to place ourselves differently and aim to position our brand as one which caters many services. how do you plan to differentiate your brand from the increasing competition? AS: Almost all the airlines today are highlighting the ‘low-fare’ factor as a differentiator.

exceptional customer service and the ability to combine technology and successful strategic initiatives. It is reflective of the consumer's faith in our services. et al. outdoor. cost conscious and focused on being on the top. 2008 in London at a special ceremony commemorating the feat. superior market growth. SpiceJet has built a reputation for low fares with high customer value offering. achieving a revenue growth of 121 per cent in 2007 and capturing a sizeable market share of 10. For our latest campaign. we are looking at various Indian magazines. The award will be handed over formally by Frost and Sullivan to SpiceJet Limited on Thursday. SpiceJet Flies to the Top with Frost & Sullivan Award New Delhi & London. "We are delighted to receive the "2008 Indian Commercial Aviation Emerging Company of the Year" Award. I cannot give you an exact number but we nearly spend about 35% of our annual turnover on our advertising and brand building exercises. print. We are proud of our achievement and we are sure that this is a beginning of a significant journey ahead. SpiceJet Limited said. Commenting on this award. As a low-cost carrier that commenced operations in 2005. 4Ps B&M: How much budget have you earmarked for your advertising and brand building initiatives? AS: Well.AS: We are looking at a 360-degree approach for our marketing initiatives so as to achieve maximum reach and communicate to all our travellers. radio channels.Frost & Sullivan bestows its prestigious award"2008 Emerging Company of the Year Award for Indian Commercial Aviation"on SpiceJet. November 10:. The winning company should also have exceptional knowhow to take advantage of market changes through the execution of innovative strategies within the existing competitive landscape. Director.5 per cent in 2008." Today SpiceJet has around 100 flights daily covering 17 destinations - . This annual award is presented to a company that has emerged as a significant player within its industry by exhibiting outstanding management. network and our people. It is a recognition for the 2000 employees who have worked together to be efficient. November 20. Bhulo Kansagra.

caps and watches. well-trained ground personnel and courteous check-in staff make SpiceJet the prefer#B50229 low-cost airline. perfumes. "This was accomplished through an expansion in fleet numbers. the fleet size of SpiceJet was 11 aircraft. The number of passengers who flew with SpiceJet in 2006 was 2. As a result. 500 and Rs. such as Mumbai. 45% of business travel and over 90% of . "Boeing 737800 and 737-900 are the prefer#B50229 aircraft models for reasons of operational efficiency and fuel economy. to better utilise existing slots." SpiceJet has a unique marketing strategy that focuses on word-ofmouth marketing. the airline's prices compete with first-class Indian railway fares. SpiceJet started off its services with a revolutionary pricing of Rs. the airline added seven more aircraft to its fleet. SpiceJet has introduced on-board merchandise sales such as goggles." states Siddharth. airplane models.a definite increase from 2006." explains John Siddharth. rising to 3. This was followed by air tickets priced at Rs. At the end of 2007." SpiceJet has also focused on the curved winglet design which #B50229uces noise and improves fuel economy by 2-3 per cent. with a further order for 13 aircraft from Boeing scheduled for delivery over 2008 -2011." remarks Siddharth. with the latter introduced last year to carry more loads in busy. To build further on its branding value. In 2006. slot-constrained airports. supported by print and Internet media initiatives. The company has also expanded inner aircraft room by #B50229ucing unnecessary storage areas and allotting them to passenger seats. the competitive edge for SpiceJet lies in the quality of service offe#B50229 during the flight. 999 . 99 for the first 99 days. when SpiceJet flew to 14 destinations with 83 flights operating daily.7 million in 2007. Innovative pricing has also been central to the company's success. "A disciplined crew. "While there is stiff competition in the low-cost carrier market in India.a pricing strategy that continues. destinations served and a considerable increase in the number of daily flights. Frost & Sullivan. Research Analyst. Sales of branded merchandise will also be available through the company's website. "The company's strategy of increasing the frequency of flights to existing stations has enabled it to enhance efficiency without compromising on quality. This has resulted in 42% repeat flyers.21 million. "SpiceJet's focus on technology innovation ranges from the choice of the aircraft to the winglet design.

delivering the lowest air fares with the highest consumer value. Guwahati. coupled with a Technical Dispatch Reliability of 99. customers.passengers recommending the airline through word of mouth. Mumbai. Chennai. product.) Marketing. Hyderabad. Ahmadabad. Coimbatore. Delhi. and strategic product development. Jaipur. About SpiceJet SpiceJet is India's 'best low cost airline' *. Pune.6% making us an airline with least cancellations. analysts quantify several market factors for each market participant according to p#B50229etermined criteria. and extensive secondary research in order to identify best practices in the industry. Varanasi and Visakhapatnam. along with extensive secondary & technology research. analysis. technological innovation. The recipient of this Award has excelled based on one or more of the following criteria:        Proof of success executing a restructuring strategy New market penetration (geographic. The companies' efforts are then analysed. etc. We operate 98 flights daily to 17 cities viz. Kolkata. basis the number of new customers. paying close attention to their combined operations efforts. Bagdogra. Bangalore. Our on-time performance is amongst the best in India. Goa. In addition to the above. promotion. Jammu. Srinagar. and commitment to business expansion coupled with market growth. This includes interviews with market participants. customer service. and visibility of the company Degree of strategy innovation Technological innovation and leadership Increased name recognition Revenue and market share growth Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership. new segments. at 82%. there are specific criteria used to determine final competitor rankings in this industry. and suppliers. SpiceJet's new generation fleet of 15 Boeing 737-800 / 737-900ER aircraft are backed by cutting edge technology and infrastructure to ensure the highest standards in safety and operating efficiency. Industry analysts compare market participants and measure performance through in-depth interviews. ." Research Methodology: To select the Award recipient.

evaluates and implements effective growth strategies. visit http://www.spicejet. The company's TEAM Research. (Sept 2007).Visit www. partners with clients to accelerate their growth. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies.frost. awarded at Kota Kinabalu. SpiceJet is among the Top Ten Best Budget Airlines in Asia as recognized by Smart Travel Asia magazine (Sept 2008) Hong Kong  SpiceJet voted the Best Low Cost Airline by a reader's survey conducted nationally by India's leading travel magazine Outlook Traveler. emerging businesses and the investment community from more than 30 offices on six continents. (Feb 2008).com About Frost & Sullivan Frost & Sullivan. Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates. India  *SpiceJet was recognized as Best Low Cost Airline by TAFI (Travel Agents Federation of India)-Abacus. For more information about Frost & Sullivan's Growth Partnerships.com.Malaysia. the Growth Partnership Company. .

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