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REVENUE MANAGEMENT Spice Jet
REVENUE MANAGEMENT Spice Jet
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Submitted By -
Name: SANDHYA
2nd Semester M.SC IN HA
Roll No: 1921122033
At
1. Firstly, I would like to thank Miss Deeksha Govil who had supervised the study
and guided us in doing the assignment. His presence and assistance was
remarkable and so I am grateful to him.
2. Secondly, I would like to thank all other people who provided me with the
resources to conduct my study. Their help and assistances was very valuable
and so I would like to acknowledge them as well.
Overall all the above mentioned people had a great role in my study.
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SpiceJet is India's 'best low cost airline'*, delivering the lowest air fares with the highest consumer
value. We operate 115 flights daily to 18 cities viz. Ahmedabad, Bangalore, Bag Dogra, Chennai,
Coimbatore, Delhi, Guwahati, Goa, Hyderabad, Jammu, Jaipur, Kochi, Kolkata, Mumbai, Pune,
Srinagar, Varanasi and Visakhapatnam.
Our on-time performance is amongst the best in India, at 82%, coupled with a Technical Dispatch
Reliability of 99.6%, making us an airline with least cancellations. SpiceJet's new generation fleet of
19 Boeing 737-800 / 737-900ER aircraft are backed by cutting edge technology and infrastructure to
ensure the highest standards in safety and operating efficiency.
1. INTRODUCTION OF COMPANY
MISSION
“To become India’s Favorite low cost airline, providing tickets to customers at lowest possible prices
with the highest consumer value”
VISION
“To ensure that flying is no longer confined to CEOs and business travelers, but affordable to
everyone”
OBJECTIVES
Independent Director
(Mr. Manoj Kumar & Mr. Anurag
Bhargava)
2. HISTORY OF COMPANY
STARTUP OF COMPANY
Earlier known as Royal Airways, The origins of SpiceJet can be tracked back to March 1984 when
the company was established by Indian industrialist S. K. Modi to provide private air taxi services.
On 17 February 1993, the company was named as MG Express and entered into technical partnership
SUCCESS STORY
1.Developments at SpiceJet
During the year under review, the Company continued to scale operations and strengthen
competitiveness with multiple initiatives undertaken towards augmenting customer-centricity and
improving financial position. In line with these objectives, the focus has been on network expansion,
enhancing and making revenues more predictable, optimising costs and providing a delightful flying
experience to customers.
(a) Financial stability
SpiceJet despite challenging macroeconomic conditions and ground in go fits MAX aircraft fleet
moved quickly to recover and managed to arrest net loss at Rs 3,161 million following a Rs 4,275
million loss in the first two quarters. SpiceJet generated Rs 3,426 million cash flow from
operating activities.
(b) Fleet and network augmentation
The Company’s initiative towards network optimisation, delivering consistent and impressive
‘On-Time Performance and providing seamless connectivity enabled it to achieve sustained
PERSONNEL MANAGEMENT
1. Internal Control The Company’s internal control systems are commensurate with the
organisations pace of growth and increasing complexity of operations and have been designed to
provide reasonable assurance regarding the following:
Effectiveness and efficiency of operations
Adequacy of safeguards for assets
Prevention and detection of frauds and errors Accuracy and completeness of the accounting
records Timely preparation of reliable financial information
4. FINANCIAL STATUS
ANNUAL TURNOVERS
31-Mar-
Particular 31-Mar-19 18 31-Mar-17 31-Mar-16 31-Mar-15
Revenue 91,214.75 77,601.34 61,913.62 50,880.72 52,015.25
Total Revenue 91,214.75 77,601.34 61,913.62 50,880.72 52,015.25
Cost of Revenue, Total 73,087.68 55,482.06 44,325.43 35,941.02 48,057.59
Gross Profit 18,127.07 22,119.28 17,588.19 14,939.70 3,957.66
Selling/General/Admin.
17,275.28 14,291.85 12,054.59 9,265.54 10,386.63
Expenses, Total
SWOT ANALYSIS
Strengths in the SWOT analysis of SpiceJet
The power to fly – The management personnel of SpiceJet are all seasoned professionals and
seniors who have a good amount of international experience in both managing and launching
low-cost airlines. By having many man-hours in the industry, the management is committed
to bringing to customers in India, the benefits of the global revolution in the skies. The airline
provides a comfortable journey that is affordable and refreshing.
Safety features – The airline invests a huge amount in safety and maintenance of aircraft by
a high level of expertise people. The pilots, maintenance crew, and its engineers are given
rigorous training and are hand-picked for their experience and knowledge in the domain.
Hence the passengers can rest while traveling.
Dynamic fare structure – Having a dynamic fare structure, the airline provides fares that are
affordable and comparatively lower those other airlines. Having contemporary interiors,
vibrant colors, and modern graphics, SpiceJet most fits the current traveler.
Good reachability – SpiceJet has good reachability to about 55 destinations. This makes the
traveler fly to these destinations easily.
https://www.indiainfoline.com/company/spicejet-ltd/management-discussions/3367
https://www.altexsoft.com/blog/business/hotel-revenue-management-solutions-best-practices-
revenue-managers-role
https://en.wikipedia.org/wiki/SpiceJet
https://smallbusiness.chron.com/importance-revenue-management-71942.html
https://www.spicejet.com/InvestorsFinancialInformation.aspx
https://www.marketing91.com/swot-analysis-of-spicejet/