Spicejet Case Study

Submitted by:
Manzoor
FT152099
9/29/2014

Overview of Spicejet route map of India

Overview of Transport and logistics of India
The transport and logistics sector of is generally important for the development of a country in various forms. Since the 1990's, the transportation infrastructure of India has undergone a drastic change. The demand for transport grew at an annual rate of 10%, in the last decade the demand in the transport and logistics industry grew side by side with the accelerating Indian Gross Domestic Product . This growth increased the demand for all transport services.
The transport and logistics services in India,
The company was promoted by Modi group of companies under the name Modi Luft. It was then acquired by Royal holding Services in 2000 and again started its operation in 2005. Currently SpiceJet is owned by Sun Group of India. Spice jet has partnership also with Navitaire , the world's renowned low-cost support system for reservations and revenue management for providing e-booking and e-ticketing services. It was among the first private companies that stepped into the Indian aviation sector. Spicejet Cargo is a division of Spicejet airlines which offers proper, safe, correct, timely and efficient air freight transportation across India backed by Spicejet state-of-the-art infrastructure and professional expertise. Objective: the objective of the SpiceJet Ltd. was launched to deliver the lowest air fares with the highest consumer value, to price sensitive consumers. Vision: is to assure that flying is not only restricted to rich peoples like CEO 's and business travelers only but affordable to everyone. Total Income - Rs. 64370.53 Million ( year ending Mar 2014) Net Profit - Rs. -10032.44 Million ( year ending Mar 2014)
2) Industry characteristics
a.
These are neighbor countries of India so it can get license from the government easily. Themost important thing is there is no low cost airline exists on these routes so it will not have problem of little profit margins. Also it is very important that the political and economical conditions of thesecountries are improving. [After overcoming from the problem of LTTE Srilanka is one of the preferredtourist destinations(). Bharti Airtel has acquired Warid {a Bangladeshi telecom company} and alsoother Indian companies are eyeing over there so trade between countries will enhance transportation().As we look at Nepal than it is always a preferred destination for tourism by Indians so by operating onthese routes Spice Jet can generate Profits as well as it can further expand its business in rest of theworld like Gulf and