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1. SPICEJET'S PERSPECTIVE LOW-COST CARRIERS IN INDIA PRESENTATION Group : 38 23PGDM114 SWARNAM BHADANI 23PGDM116 TARUN CHOUDHARY 23PGDM119 UPADHYE PRATIK 23PGDM121 VINAY MITTAL

2. CASE SUMMARY The article looks at the growth of high-cost carriers (LCCs) in India’s debt and airline boom and their eventual bankruptcy. Low-cost companies have already become important since the global financial crisis in 2008 as a way to reduce travel costs and offer on-the-go charges to companies LCCs' domestic air destination visitors grew at an annual cost of 18% focusing on cheaper operating costs and better customer spending SpiceJet has been one of the many LCCs in India in terms of each in. During the break of the 2010-2011 financial year, SpiceJet posted a net profit of Rs 1.01 billion (US$20.2 million). Nonetheless, put up economic yr reviews confirmed that this airline has been one of those back pressures and is in purple ink. SpiceJet became just one example of many airlines, especially low-cost vendors that dealt with various issues threatening its fortunes these setbacks included higher costs, higher debt and cash availability, growing management challenges, airline complexity and rising fuel costs This episode ambitions to draw attention to the macro and micro stage elements that impact Chet’s ability to drive as he should.

3. COMPANY PROFILE Gurgaon, India is home to SpiceJet, a low-cost carrier. On May 24, 2017, the airline had difficulties. spiceJet , originally known as Modiluft , is a company that provides air taxi services. SpiceJet has given each passenger a name. Numerous herbs and spices, such as celery, thyme, and cinnamon. SpiceJet became an issuer of exchange fees. The initial payment is Rs 99 for 99 days. The airfare tickets are priced at Rs. 500 and Rs. 999. like a Result Indian Rail First Class/Tier First Airfare

4. Company Vision To ensure that flying is no longer only for CEOs and business travelers, but for everyone. To become India’s preferred low-cost airline, delivering the lowest air fares with the highest consumer value, to price-sensitive consumers. Company Mission

5. SWOT ANALYSIS STRENGHTS WEAKNESSES OPPORTUNITIES THREATS LCC segment is ever growing in the country. SpiceJet is one of the largest LCC in India. Good presence in the market due to its branding and advertising. Low market share of SpiceJet due to presence of significant competition. The LCC model followed by SpiceJet is easy to replicate. A general sense of customer reviews for SpiceJet usually comes out negative. Middle class taking to the skies is a huge opportunity for SpiceJet. More opportunities to grow on popular routes and destinations. International tie-ups would boost brand image and reach. Strong competition in LCC segment. Rising fuel costs can decrease margins for SpiceJet. Chaning government policies and international pressure affects brand operations.

6. IMPACT OF LCC ON AVIATION INDUSTRY High concentration on domestic flights. Low-cost airline. Provides value for money services. Provides On time services. No differentiation or separation in social class.

7. How did the concept of LCC emerge in India? Which factors encouraged the growth of LCCs? Concept of LCC The history of the airline industry began in 1930 with the launch of Tata Airlines by the Tata Group. Though the entry of private companies was restricted at that time but after liberalization, privately owned airlines entered it. In 1990, the government allowed private players to enter the market. LCC emerged as an important focus in economic development. The main focus was on infrastructure and travel development especially airlines thus giving private players a more generous access and expansion of the same services with cheaper fair carriers on equally priced tickets as a first-class train ticket and thus shorter time Eve encourages people to travel by plane when they arrive at their destination. In 2003, the first LCC to enter India was Air Deccan. The arrival of its first LCC in India marked a turning point in the Indian aviation industry. This has changed from traditional finance and administration fees to special discounts, promotional fees, check fees, web fees and corporate discounts

8. How did the concept of LCC emerge in India? Which factors encouraged the growth of LCCs? LCC emerged as a more cost-effective but value-added option for businesses in India. Many businesses negotiated with airlines to leverage discounted corporate rates for their enterprise needs, with SpiceJet being a favorite due to its lowest fares and highest customer value. Increasing the number of seats allowed LCC to reduce maintenance and labor costs, resulting in a better economy. SpiceJet, through LCC, offered customers the option to buy tickets directly, bypassing the global distribution system and lowering unit costs. LCC attracted more customers by providing the lowest prices. SpiceJet differentiated its operations by targeting Tier II and Tier III cities, aiming to increase its market share. LCC diversified its revenue streams by selling various products and services through its website and onboard, and charging for check-in fees and credit card payments. High aircraft utilization and low downtime hours contributed to frequent, convenient, and cost-effective travel for customers. The company's frequent flights and demand for air travel enhanced cost efficiency and helped maintain low airfares.

9. What factors should SpiceJet consider before strategizing its operations in India? With an eye on the airline's potential for expansion in India over the next few decades, SpiceJet began operations there. However, it ignores a few significant hazards, and the more risks there are, the more issues arise. The following are a few of the key elements that have significantly impacted SpiceJet's success. Absence of personnel The facilities are inadequate. Aviation turbine fuel (ATF) is expensive.

10. In an effort to get into the unexplored regional market, SpiceJet has started to open up additional locations. The fleet has been dispersed far, which has raised expenses. While the majority of LCCs concentrate on point-to-point route construction and strive to fly frequently to a small number of destinations. What strategies could be adopted by SpiceJet to overcome the factors that inhibit the success of the LCC business model? The foundation of the low-cost carrier (LCC) business strategy is minimizing airline expenses. The goal of all major operational initiatives, including fleet and route planning, is to minimize costs. Fleet Strategy The cheap cost of the airline is the foundation of the low-cost carrier model (LCC). Cost reduction is possible in all main operational strategies, including the fleet and road plan. Route Strategy Cost Reduction through Operational Efficiency Increase the fuel burn efficiency out ratio by using more capacity while maintaining the proper altitude and speed.

11. SpiceJet is a low-cost carrier that focuses mostly on domestic travel while offering its middle-class and lower-middle-class clients value-for-money services. It has been effective in providing lower-middle class and middle-class passengers with timely services and reasonably priced offers, but it should also concentrate on making money in order to sustain its own long-term stability and sustainability, making sure that they live up to their company slogan, "flying for everyone." CONCLUSION