SpiceJet Ltd will rework its existing route strategy and will also replan the future route map both in the domestic and international markets as the low-cost carrier (LCC) will be eligible to fly to international destinations by May 2010.
According to Sanjay Aggarwal, chief executive officer of the airline, ?there is still demand in the market especially for LCCs. Nearly 15 million people travel by train everyday and out of that about 8-10% spend more to travel by AC 2 tier and above.
This segment can be tapped by the LCCs, which means we can fly 1.5 million more passengers per day. Today, all airlines put together fly 1,30,000 passengers per day. This can happen if connectivity is made available between tier II cities and if the LCCs implement an effective pricing and route strategy. Depending on the demand on a particular route, airlines can decide on the size of the aircraft?.
He said, there is no question of over capacity in the case of LCCs. SpiceJet has garnered a market share of 12.5% in February 2009 as against less than 8% during the same time last year. ?In the January-March 2008 quarter, SpiceJet had 115 daily flights with 19 aircrafts and during January-March 2009 quarter we had same fleet strength. However, the passengers movement went up by 11% this year compared to last year?, he said. In April, SpiceJet would be adding four flights in the summer schedule and later in the coming months would add more flights, he added.
Talking about the aviation industry, Aggarwal said, ?Yes, these are tough times for the industry. But I am quite optimistic that the industry should continue to grow by 13-14%. And if that happens, LCCs should also grow anywhere between 15% to 20%. LCCs today have about 50% of the overall market?.
He said, SpiceJet was not desperate to participate in any mergers and acquisitions (M&As) in the current market conditions.The airline can look at acquiring, if and when the aviation industry revives, . Wilbur L Ross, who invested $ 80 million in SpiceJet, is committed to SpiceJet and its growth plans, he said adding, there is no truth in the media reports which said that Wilbur is keen on enhancing his share in the Indian skies by integrating LCCs-SpiceJet, GoAir and Jetlite.