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Friday 14 March 2014

How SpiceJet's CIO Found an Innovative Way to Save Personnel Costs

There was a time, in the not-so-distant past, when airlines evoked only one emotion in the average Indian traveller: Sticker shock.You can hardly blame them. Airlines were a snooty lot and were seen as a luxury only for the privileged. That isn't true anymore. And that's because, the average Indian traveller has found an empathiser in low-cost airlines. Their arrival has made airlines down-to-earth and affordable.In that bracket falls India's second largest low-fare airline, SpiceJet.
The Organization: With over 300 domestic flights catering to 46 Indian cities, SpiceJet is owned by Kalanithi Maran's Sun Group. In February 2005, SpiceJet ordered its first 20 Boeing aircrafts and it started with launching an airline in Delhi.


The Business Case: Last month, the airline sparked a price war by slashing rates to fill in planes in the lean period between March-September. This forced other low-cost airlines to follow suit. That's a clear indication of the mounting heap of cost pressures troubling low-cost airlines. But fierce competition and a low-margin business are forcing airlines to cut costs and optimize resources.That's something Virender Pal, CTO, SpiceJet, realized way back in 2006.He knew that as SpiceJet introduced new routes, it would need more IT staff to manage ground IMS operations.
Read News in full 13/03/14 Shubhra Rishi/cfcworld.com

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