This Case is about STRATEGY
PUBLICATION DATE: June 28, 2012 PRODUCT #: W12048-PDF-ENG
This case discusses the development of low-cost carriers (LCCs) in India in regards to the development of the Indian aviation industry as well as the following drop of the LCCs into financial loss. The LCCs became significant for value-adding and cost cutting options in corporate business travel. One of the numerous low-cost airlines in India, SpiceJet had been among the very famous, with maximum customer value and the lowest airfares. A host of problems – such as growing direction challenges, complex flight operations, improving price to sales ratios, climbing debt, and rising petroleum costs – were endangering the survival of airline businesses, particularly LCCs. SpiceJet was no exception.