Lower oil prices has led to a growth in the domestic airline industry and also airlines have increased their capacity. According to data from Directorate General of Civil Aviation the airlines have carried almost 21% more passengers in June 2016 than it was in June 2015 (7.97 million and 6.6 million passengers respectively). SpiceJet is flying the highest in this criteria as reported, they are functioning at 93% seats full. SpiceJet told Bloomberg TV India, that it has seen good growth of 22 percent in the number of passengers. It has spotted a change in the mode of transport that people are using, that is more and more people are upgrading to air travel.
Although Spicejet said that it doesn’t see any drop in the demand for domestic air travel, but most of the growth is from the regional market, and the growth in the metro cities market has been rather mute. Still the airline believes that continuous discounting will keep stimulating demands. Demands for International flights has been seasonal. It was only two years ago, the airline was making huge losses as they were not getting oil refills and also the retreating of creditors had hit them badly. Spicejet recently launched its subsidiary called ‘SpiceJet Merchandise Private Limited’ with a focus on consumer merchandise, including readymade apparel. From January to March this year, in a fifth straight quarter, Spicejet posted a net profit Rs 73.19 crore, a three fold rise.
28/07/16 Financial Express
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Although Spicejet said that it doesn’t see any drop in the demand for domestic air travel, but most of the growth is from the regional market, and the growth in the metro cities market has been rather mute. Still the airline believes that continuous discounting will keep stimulating demands. Demands for International flights has been seasonal. It was only two years ago, the airline was making huge losses as they were not getting oil refills and also the retreating of creditors had hit them badly. Spicejet recently launched its subsidiary called ‘SpiceJet Merchandise Private Limited’ with a focus on consumer merchandise, including readymade apparel. From January to March this year, in a fifth straight quarter, Spicejet posted a net profit Rs 73.19 crore, a three fold rise.
28/07/16 Financial Express
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