SpiceJet...all spiced-up!

When Rome was burning, Nero was fiddling…and when other airlines were bleeding and hunting for interested suitors to invest in their respective ventures, SpiceJet was sitting calm...despite losses, with umpteen proposals in the pipeline. Yes, despite profit figures still being a distant cry for the May 2005 startup, it has never felt short of interested suitors. At the moment, its kitty is full with $118 million worth of investment proposals from the country’s second-largest multi-interest group, Tata group, renowned investment banker Goldman Sachs, private equity expert Istithmar PJSC and world’s largest aviation financing entity Texas.

The airline uses a single family of aircrafts (Boeing) in order to reduce costs and today boasts of having the lowest cost structure in the industry. According to Ajay Singh, SpiceJet, “Our cost is 15% than budget carrier Air Deccan and 45% less than full service carrier Jet Airways…” But here again, it’s important to note that the whole fever of losses ailing the sector has caught onto the LCC too with Rs.17.82 crore for the quarter ended August 31, 2006. With other LCCs vigorously offering rock-bottom prices, the airline too has gone ahead to offer Rs.99 tickets – which simply does no good to its financials!

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

Rashmi Bansal Publisher Of JAMMAG Magazine Caught Red-Handed, for details click on the following links:-

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)