WOW ! what a different airline industry environment India's low cost airlines currently enjoy when compared with Europe's more mature markets.
Yesterday we had a really enjoyable morning with Mr Vipul Seth, Deputy General manager of India's second largest low cost carrier, SpiceJet finding out what's really happening in a market place for air travel with is growing at over 15% per year, within an economy which continued growing throughout the global recession and within a country where domestic travel, once dominated by the world largest employer (Indian Railways) is rapidly converting to a growing network of low cost airline services.
SpiceJet (see yesterday's news story) is responding with rapid growth in its fleet and a well thought out - but very aggressive - business plan. It is no exaggeration to say that we were bowled over by their focussed approach to building a low fares carrier, but with a real appreciation of what their customers want.. low fares obviously, but coupled with frills such as pre-seat allocation and pre-ordered meals, as well as a joined-up approach to route planning. The basics of the business Spice jet is building are sound with a high proportion of repeat passengers flying on a new fleet of aircraft (average age less than 2 years old); with a massive network covering almost all the many cities of India and always with multi frequencies .. never once or twice a week.. at least daily and always with a programme of quick turn rounds (20 minutes in most places) and high aircraft utilisation. We were impressed by the dynamic story and by their ambitious plans for the future.. albeit clearly consistent with a dramatic growth in total future demand. Domestic markets will soon be augmented by plans to fly internationally to Kathmandhu, Colombo, Male and Dhaka and the current number of happy passengers being carried daily (currently 22,000) will continue to spiral upwards. All this and SpiceJet is proud to one of the possibly only two profitable airlines in India.
With new wealthy owners and clearly, if Mr Seth is indicative of the rest, a very strong management team, SpiceJet is set to become one of the world's aviation success stories over the next decade.. !!
Yesterday we had a really enjoyable morning with Mr Vipul Seth, Deputy General manager of India's second largest low cost carrier, SpiceJet finding out what's really happening in a market place for air travel with is growing at over 15% per year, within an economy which continued growing throughout the global recession and within a country where domestic travel, once dominated by the world largest employer (Indian Railways) is rapidly converting to a growing network of low cost airline services. SpiceJet (see yesterday's news story) is responding with rapid growth in its fleet and a well thought out - but very aggressive - business plan. It is no exaggeration to say that we were bowled over by their focussed approach to building a low fares carrier, but with a real appreciation of what their customers want.. low fares obviously, but coupled with frills such as pre-seat allocation and pre-ordered meals, as well as a joined-up approach to route planning. The basics of the business Spice jet is building are sound with a high proportion of repeat passengers flying on a new fleet of aircraft (average age less than 2 years old); with a massive network covering almost all the many cities of India and always with multi frequencies .. never once or twice a week.. at least daily and always with a programme of quick turn rounds (20 minutes in most places) and high aircraft utilisation. We were impressed by the dynamic story and by their ambitious plans for the future.. albeit clearly consistent with a dramatic growth in total future demand. Domestic markets will soon be augmented by plans to fly internationally to Kathmandhu, Colombo, Male and Dhaka and the current number of happy passengers being carried daily (currently 22,000) will continue to spiral upwards. All this and SpiceJet is proud to one of the possibly only two profitable airlines in India.
With new wealthy owners and clearly, if Mr Seth is indicative of the rest, a very strong management team, SpiceJet is set to become one of the world's aviation success stories over the next decade.. !!
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