Low-cost Carriers in India: SpiceJets Perspective Harvard Case Solution & Analysis

This case discusses the emergence of low-cost carriers (LCCs) in India in connection with the growth of the Indian aviation industry and the subsequent fall of the NBP in financial losses. NBP was important to add value and reduce costs of alternatives in the corporate travel industry. Prior to 2008, the global economic crisis, the domestic air traffic NBP recorded a compound annual growth of 18 percent passenger. Among the many airlines in India, SpiceJet was one of the most popular, with the lowest and highest customer value tickets. While SpiceJet's net profit was INR 1.01 billion (US $ 20,2 million) in the 2010-2011 fiscal year, the results of the next financial year, said that the company has also entered into a number of loss-making airlines in India. Many of the issues - such as the increase in debt, the increased cost to revenue relationship, more complex management tasks, complex operations of flight, and the rise in oil prices - threaten the survival of airlines, especially LCCs. SpiceJet was no exception. "Hide
by Sanjeev Prashar, Adeshwar Raja Balaji Pras, VS Parasaran, Vijay Kumar Venna, Sashikanth Yenika Source: Richard Ivey School of Business Foundation 14 pages. Publication Date: June 28, 2012. Prod. #: W12048-PDF-ENG

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