| Carrier: | SpiceJet
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| Headquarters: | INDIA
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| Founded: | 2005
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| Destinations: | 15
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| Bases: | New Delhi
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| Owners: | Public, Private Investors
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| Listed: | Yes
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| Online Booking: | Yes
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| Website: | http://www.spicejet.com/
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| Fleet | B737-800 10
| Overview - SpiceJet SpiceJet is a domestic low cost airline with a single aircraft type fleet, launched on 23 May 2005, initially operating to New Delhi, Mumbai, and Ahmedabad. SpiceJet's route network has grown to 15 destinations - Delhi, Mumbai, Ahmedabad, Bangalore, Pune, Kolkata, Jammu, Srinagar, Hyderabad, Chennai, Guwahati, Varanasi, Jaipur, Goa and Kochi.
Following a classic low cost model, SpiceJet has now achieved a domestic market share of approximately 8%. The main focus of the airline is passenger carriage, though on-board courier services have been recently launched "in a small way".
Like other Indian LCCs, SpiceJet offers a variety of distribution channels - internet bookings, call centres, airport counters, and selected Galileo-connected travel agents who have exclusive access to SpiceJet's full range of fares. Innovative channels include State Bank of India ATMs via a co-branded credit card, and over 100 SpiceShops around India who will accept ticket payments at their retail locations. In Jul-06 SpiceJet signed an exclusive agreement to provide the airline's low fares and inventory on the Galileo GDS platform.
In Sep-06, SpiceJet announced the launch of SpiceJet Hotels, a consumer-friendly online portal offering preferential rates and packages for hotel properties in all of the airline's destination cities. A "strong relationship with Yatra Online" allows SpiceJet to deliver significant discounts for the airline's online users.
SpiceJet plans to rely heavily on ancillary revenues, reportedly targeting between 15-20% from non-ticket sources by the end of 2007. Sales of food on-board commenced in May-07 on flights longer than 90 minutes.
SpiceJet was originally known as Royal Airways, and Royal Holdings Services Limited is one of the largest shareholders in, and promoter of, the airline. Royal Airways’ ancestry is in Modiluft, an early 1990s joint venture with Lufthansa, which was not a great success.
Foreign international investors in SpiceJet include Dubai-based Isthithmar (private equity arm of the Dubai Government) and Citigroup. Ewart Investments, a division of the major Indian conglomerate, the Tata Group, acquired a 6% stake in Jan-07.
Last updated: 19 July 2007
Copyright Centre for Asia Pacific Aviation
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