Spicejet Airlines - Industry Overview
SPICE JET AIRWAYS
ECONOMICS PROJECT
ON
SPICE JET
1
SPICE JET AIRWAYS
SPICEJET AIRLINES
INDUSTRY OVERVIEW
At a time when most developed economies shrunk, a 4.7% growth during the first quarter of 2009-10, puts India among the top-most growing nations. In spite of the global recessionary trends, India managed 6.7% economic growth in the fiscal 2009. The growth in the aviation sector is linked with the growth of GDP, which according to latest figures released in Dec 2009 has rebounded to pre-slowdown phase of nearly 8%.In recent years, with the entry of several new airlines; the aviation sector in India has undergone a major transformation. The arrival of the low-cost airlines like Air Deccan (merged with Kingfisher now), Go Air, and SpiceJet revolutionized the sector to meet the growing demand of economical and faster inter- city travel options within India. Air travel is no longer the luxury of business executives and the economically well-off. As more airlines are entering India’s domestic aviation market, it is leading to increased competition, resulting in drastic fare cuts.
ABOUT THE COMPANY
SpiceJet is a low-cost airline headquartered in Chennai, India. It began service in May 2005 and by 2008, it was India 's second-largest low-cost airline in terms of market share. The origins of SpiceJet track back to February 1993 when ModiLuft, one of India 's first post-deregulation airlines that was launched by the Indian industrialist S K Modi, in technical partnership with the German flag carrier Lufthansa. The airline project was started in February, 1993 by S K Modi, Ashutosh Dayal Sharma and Kanwar K S Jamwal and on 5 May 1993 took the first flight from New Delhi to Mumbai. The airline actually started operations within three months of its conception – a record of kinds in itself. It maintained very high standards in flight safety, ground maintenance and on-time performance, owing to a strong support from Lufthansa AG. ModiLuft was the only
ECONOMICS PROJECT
ON
SPICE JET
1
SPICE JET AIRWAYS
SPICEJET AIRLINES
INDUSTRY OVERVIEW
At a time when most developed economies shrunk, a 4.7% growth during the first quarter of 2009-10, puts India among the top-most growing nations. In spite of the global recessionary trends, India managed 6.7% economic growth in the fiscal 2009. The growth in the aviation sector is linked with the growth of GDP, which according to latest figures released in Dec 2009 has rebounded to pre-slowdown phase of nearly 8%.In recent years, with the entry of several new airlines; the aviation sector in India has undergone a major transformation. The arrival of the low-cost airlines like Air Deccan (merged with Kingfisher now), Go Air, and SpiceJet revolutionized the sector to meet the growing demand of economical and faster inter- city travel options within India. Air travel is no longer the luxury of business executives and the economically well-off. As more airlines are entering India’s domestic aviation market, it is leading to increased competition, resulting in drastic fare cuts.
ABOUT THE COMPANY
SpiceJet is a low-cost airline headquartered in Chennai, India. It began service in May 2005 and by 2008, it was India 's second-largest low-cost airline in terms of market share. The origins of SpiceJet track back to February 1993 when ModiLuft, one of India 's first post-deregulation airlines that was launched by the Indian industrialist S K Modi, in technical partnership with the German flag carrier Lufthansa. The airline project was started in February, 1993 by S K Modi, Ashutosh Dayal Sharma and Kanwar K S Jamwal and on 5 May 1993 took the first flight from New Delhi to Mumbai. The airline actually started operations within three months of its conception – a record of kinds in itself. It maintained very high standards in flight safety, ground maintenance and on-time performance, owing to a strong support from Lufthansa AG. ModiLuft was the only
Bibliography: Annual report of SpiceJet Wikipedia.com DGCA and CAPA website. Indian tourism and travel website. 22