SpiceJet targets profit via advertisements, in-flight sales
SpiceJet is banking on ads and in-flight sale of merchandise and cargo to turn profitable. It has set a revenue target of Rs 2K cr by next fiscal.
By Chanchal Pal Chauhan, TNN |
NEW DELHI: SpiceJet is banking on its ancillary business such as advertisements, in-flight sale of merchandise and cargo to turn profitable. It has set a revenue target of Rs 2,000 crore by next fiscal.
Working on the model of international low-cost carriers such as Easy Go and Ryan Air, that generate substantial ancillary revenues, SpiceJet aims to double its revenue from this segment to around 9% in the next fiscal from 5% and raise Rs 180 crore from it. SpiceJet chief financial officer Parth Sarathi Basu told ET: “We will focus on non-operational revenues in a big way. It will play a major role in turning SpiceJet profitable by the next fiscal year. We are introducing on-board advertisement and also plan to increase cargo intake on our aircraft.”
The low-cost carrier also plans to introduce travel insurance through online travel agents. As of now, the insurance service is available only for direct bookings through the SpiceJet website. SpiceJet is also making substantial savings from the hardening Indian rupee. Its operating cost has fallen 4% since the dollar started depreciating.
Working on the model of international low-cost carriers such as Easy Go and Ryan Air, that generate substantial ancillary revenues, SpiceJet aims to double its revenue from this segment to around 9% in the next fiscal from 5% and raise Rs 180 crore from it. SpiceJet chief financial officer Parth Sarathi Basu told ET: “We will focus on non-operational revenues in a big way. It will play a major role in turning SpiceJet profitable by the next fiscal year. We are introducing on-board advertisement and also plan to increase cargo intake on our aircraft.”
The low-cost carrier also plans to introduce travel insurance through online travel agents. As of now, the insurance service is available only for direct bookings through the SpiceJet website. SpiceJet is also making substantial savings from the hardening Indian rupee. Its operating cost has fallen 4% since the dollar started depreciating.
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