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Case study on spicejet. Low-cost Carriers in India: SpiceJet's Perspective | The Case Centre, for educators

The Problems SpiceJet was stumbling from one crisis to another for the past three years. The matter in arbitration is likely to be decided in the next three months and the amount ordered by the arbitration tribunal will be paid by SpiceJet to the Marans, said a SpiceJet official who did not want to be named. By then, Singh had arrived at the finance ministry with his offer to take over SpiceJet. If you keep prices low, load factors increase," says G.


Once basic housekeeping is addressed, Singh plans to focus on bigger issues.

Back to the basics: How Ajay Singh piloted SpiceJet turnaround | business | Hindustan Times

Otherwise there's a still question mark over it," says Kapoor. Then, there are reports of case study on spicejet airline buying new planes from either Boeing or Airbus as part of its long-term plan. Before Singh took over, SpiceJet was not following the low-cost model.

  • SpiceJet’s fairytale turnaround to become world’s best aviation stock
  • Singh, who runs the airline like a CEO himself, allowed some senior staff in the Maran era to leave but retained old-time loyalists who helped him launch the airline in early
  • Rising from the Ashes Singh, however, is turning things around on various fronts.
  • And his reference is also to the perception that Singh is close to the current government.

Singh, who owns around SpiceMAX seats come with more legroom, priority check-in and complimentary meals and beverages at an extra fee of Rs to Rs1, Things improved rapidly. Their turnaround time is 45 minutes," he adds.

Most orders are placed three to five years in advance.

  • This year has been spectacular for the industry with passenger traffic growing at
  • This story appears in the 17 March, issue of Forbes India.
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  • A legacy issue that prevents the airline from raising money through equity and potentially hurt investor sentiments is now closer to being resolved.

This was the biggest demand of Mallya then. After laying off over 1, people, our staff rationalisation plan is almost complete," says Singh. With some stability in operations, SpiceJet is now trying to move up the value chain.

We also aim for 15 per cent target," says Singh. It will take time for the new management to prove its credentials', says G.

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Even rivals are impressed. The management soon realised that they required two sets of pilots, engineers and cabin crews. The company is trying to prepone the deliveries to That has gone to a large extent and has helped too," said Pandurangi of Deloitte.

How Chairman Ajay Singh is nursing SpiceJet back to health His hands-on approach has led to the gradual improvement in market share, passenger load factor PLF or the number of seats sold as a percentage of seats available and financial performance in recent months. SpiceJet was raising working capital by selling tickets well in advance, and at a discount.

The airline reported a net profit of Rs The airline clocked a profit Rs crore in and has been profitable since. The airline was grounded after oil companies refused to refuel its aircraft due to non-payments.

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The airline now stands poised for expansion. SpiceJet was raising working capital by selling tickets well in advance, and at a discount. It was a diversion from the global LCC model of having single-type aircraft fleet, which keep financial and managerial complexities down and operations simpler.

  1. SpiceJet Case Study by Siddhartha Mazumdar on Prezi Next
  2. Kingfisher and SpiceJet: A study in contrast | Forbes India

The massive order is an affirmation of the resume cover letter automotive industry at SpiceJet, which was on the verge of closure in December when founder Ajay Singh returned to take over the reins from the Chennai-based Sun Group.

Singh didn't invest a penny out of his pocket in the airline until he had a fair idea of the challenges before him.

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To be fair to Singh though, the airline was bleeding then: The airline may also offer Wi-Fi for a fee next year and experiment with international low-cost flights. They were to be issued convertible warrants against this.

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These planes came on board for a short period to meet the rising passenger traffic during April to June. Fuel accounts for almost 45 to 50 per cent of an cover letter seasoned professional overall costs.

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IndiGo, in contrast, had an OTP of Singh, who had started the airline in before selling his stake to Kalanithi Maran incover letter seasoned professional in immediately. Low aviation turbine fuel ATF prices was the major contributor to this trend.

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There is a new uniform for the crew. Experts called it a stroke of luck but the airline turned in another impressive performance in the next quarter to zip up the sceptics. You have to show a concrete plan.

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He was confident that compact turboprops would make sense for an airline looking at expanding its footprint. Curiously, the final order for implementation of this directive from the department of industrial policy and promotion came only in September — a delay of nearly six months.

It is also opening SpiceJet retail stores to experiment with ancillary revenues.