Spicejet focuses on metro routes |
Jet Airways` departure from the Indian skies has ensured a smooth landing for its competitor SpiceJet, which has quickly gained shares in coveted metro routes that traditionally provide carriers high yields. Over the past six months, SpiceJet has focussed increasingly on trunk routes that Jet served earlier. A greater shift in market share in favour of SpiceJet is expected as it moved faster than its competitors in grabbing metro routes. Spicejet has also entered into a code share agreement with Emirates which would provide tailwind to its revenues and strengthen Spice¬Jet`s presence beyond home. Spicejet plans to add 64 aircraft, taking its fleet size to 135. The proposed expansion in the financial year 2020 matches that of market leader IndiGo. In the March quarter, revenue increased to 362.9 million dollars while net profit climbed 22 percent to 8 million dollars. The yield grew by 11 per cent to 60 dollars. More metro routes are likely to boost the airline`s yield growth into double digits for the next few quarters. In April, the airline announced 106 new flights, of which 73 services would be connecting to Mumbai, 16 to Delhi, and eight flights connecting Delhi and Mumbai.
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