Mumbai: According to a report by Gireesh Babu in Business Standard,
loss-ridden low-cost air carrier SpiceJet Ltd is expecting to turn
around operations by cutting costs and restructuring its network,
schedules and long-term contracts. Company officials said to generate
more revenue, SpiceJet would focus on short-duration flights on
international routes.
Addressing shareholders at the company’s Annual General Meeting (AGM) in Chennai yesterday, Kalanithi Maran, Promoter, SpiceJet, said, “We are giving our best to turn around the company.” On the sidelines of the meeting, Sanjiv Kapoor, COO, SpiceJet, said, “We have to work on reducing cost and increasing revenue, and the company is working on this.” He added unit revenue had increased nine to ten per cent year-on-year, though costs had risen at a faster pace due to the exchange rate, fuel costs, etc.
Globally, any airline took 18-24 months to emerge from losses and record profits, Kapoor said, adding in some cases it took 12 months, though these were rare. “Let’s wait and see how long it will take for us. We are only nine to ten month months into the turnaround exercise…Revenue trends are positive; costs aren’t increasing and should start coming down gradually. Hopefully, we will start seeing that soon. We are working towards increasing revenue by reconfiguring aircraft, network, schedules, etc…these will lead to visible turnaround.”
Read news in full 25/09/14 Travel Biz Monitor
Addressing shareholders at the company’s Annual General Meeting (AGM) in Chennai yesterday, Kalanithi Maran, Promoter, SpiceJet, said, “We are giving our best to turn around the company.” On the sidelines of the meeting, Sanjiv Kapoor, COO, SpiceJet, said, “We have to work on reducing cost and increasing revenue, and the company is working on this.” He added unit revenue had increased nine to ten per cent year-on-year, though costs had risen at a faster pace due to the exchange rate, fuel costs, etc.
Globally, any airline took 18-24 months to emerge from losses and record profits, Kapoor said, adding in some cases it took 12 months, though these were rare. “Let’s wait and see how long it will take for us. We are only nine to ten month months into the turnaround exercise…Revenue trends are positive; costs aren’t increasing and should start coming down gradually. Hopefully, we will start seeing that soon. We are working towards increasing revenue by reconfiguring aircraft, network, schedules, etc…these will lead to visible turnaround.”
Read news in full 25/09/14 Travel Biz Monitor
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