New Delhi: Two days after AirAsia group chief Tony Fernandes said IndiGo’s attempts at hindering launch operations would only make his airline stronger, SpiceJet’s Chief Operating Officer Sanjiv Kapoor, noting the expansive presence of the Rahul Bhatia-promoted carrier in the domestic market, spoke of the need to differentiate service offerings and improve yields.
“I do not think there is room for two IndiGos. They have their own clientele. They are doing a fabulous job. They are growing and it is difficult to match IndiGo. We have to create our special place,” said Kapoor.
He elaborated that given the high-cost operating environment in the domestic aviation market, if an airline did not have scale, the only way for it to sustain operations viably was to focus on improving yields.
Kapoor said, “The cost flow is so high, you cannot price your tickets below a certain level to stimulate people who travel by buses or trains to fly. It is difficult to pursue an ultra low-cost model in India. If you don’t have scale, you need to get yields. You need to attract corporate travelers. We are heading towards a hybrid model. We will be launching our premium economy seats soon.”
Read News in full 24/05/14 Business Standard
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