Low-cost Carriers in India: SpiceJets Perspective Case Solution

This case concerns the emergence of low cost (TFC) in India compared to the growth of the aviation industry in India and the subsequent reduction of low-cost airlines in financial loss. The low-cost airlines has become an important alternative for value added and cost reduction in company business. Before the global economic crisis of 2008, the national air traffic LCC posted a compound annual growth rate of 18 percent of the passengers. Among the many low-cost airlines in India, SpiceJet has been one of the most popular, with the lowest rates and the best value to the customer. While SpiceJet posted a net profit of 1.01 billion rupees ($ 20.2 million) in fiscal year 2010-2011, the following results for the year indicated that the company had also joined the ranks of airlines deficit India. A number of problems – such as increased debt, increased costs to income ratios, most management problems, complex air operations, and rising oil prices – was a threat to survival of airlines especially the LCC. SpiceJet was no exception.
Sanjeev Prashar,
Balaji Raja Adeshwar Pras
T.V. Parasaran,
Vijay Kumar Venna
Sashikanth Yenika
Source: Ivey Publishing
14 pages.
Release: June 28, 2012. Prod #: W12048-PDF-ENG
Low cost airlines in India: Perspective RESOLUTION If SpiceJet

Low-cost Carriers in India: SpiceJets Perspective Case Solution
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