This case argues the emergence of low-cost carriers (LCCs) in India in regards to the advancement of the Indian aviation industry as well as the following fall of the LCCs into financial loss. The LCCs became significant for value-adding and cost cutting options in corporate business travel. Before the 2008 global economic crisis, national air traffic LCCs recorded a compound annual passenger growth rate of 18 per cent.
Low-cost Carriers in India SpiceJet’s Perspective Case Study Solution
With the lowest airfares and highest customer value, SpiceJet had been among the very famous, among the numerous low-cost airlines in India. Though SpiceJet had a net profit of INR 1.01 billion (US$20.2 million) in fiscal year 2010-2011, the results following the financial year signaled that the firm had also joined the ranks of loss-making airlines in India. A host of issues - such as rising oil costs, increasing cost to revenue ratios, growing direction challenges, complex flight operations, and climbing debt - were threatening the survival of airline businesses, especially LCCs. SpiceJet was no exception.
PUBLICATION DATE: June 28, 2012 PRODUCT #: W12048-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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