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SpiceJet wins "2008 Emerging Company of the Year Award for Indian Commercial Aviation" award
Frost & Sullivan bestows its prestigious award "2008 Emerging Company of the Year Award for Indian Commercial Aviation" on SpiceJet. As a low-cost carrier that commenced operations in 2005, SpiceJet has built a reputation for low fares with high customer value offering, achieving a revenue growth of 121 per cent in 2007 and capturing a sizeable market share of 10.5 per cent in 2008.
The award will be handed over formally by Frost and Sullivan to SpiceJet Limited on Thursday, November 20, 2008 in London at a special ceremony commemorating the feat.
This annual award is presented to a company that has emerged as a significant player within its industry by exhibiting outstanding management, superior market growth, exceptional customer service and the ability to combine technology and successful strategic initiatives. The winning company should also have exceptional know-how to take advantage of market changes through the execution of innovative strategies within the existing competitive landscape.
Commenting on this award, Bhulo Kansagra, Director, SpiceJet Limited said, "We are delighted to receive the "2008 Indian Commercial Aviation Emerging Company of the Year" Award. It is reflective of the consumer's faith in our services, network and our people. It is a recognition for the 2000 employees who have worked together to be efficient, cost conscious and focused on being on the top. We are proud of our achievement and we are sure that this is a beginning of a significant journey ahead."
Today SpiceJet has around 100 flights daily covering 17 destinations -- a definite increase from 2006, when SpiceJet flew to 14 destinations with 83 flights operating daily. In 2006, the fleet size of SpiceJet was 11 aircraft. At the end of 2007, the airline added seven more aircraft to its fleet, with a further order for 13 aircraft from Boeing scheduled for delivery over 2008 - 2011. The number of passengers who flew with SpiceJet in 2006 was 2.21 million, rising to 3.7 million in 2007.
"This was accomplished through an expansion in fleet numbers, destinations served and a considerable increase in the number of daily flights," explains John Siddharth, Research Analyst, Frost & Sullivan. "The company's strategy of increasing the frequency of flights to existing stations has enabled it to enhance efficiency without compromising on quality."
SpiceJet has a unique marketing strategy that focuses on word-of-mouth marketing, supported by print and Internet media initiatives. To build further on its branding value, SpiceJet has introduced on-board merchandise sales such as goggles, airplane models, perfumes, caps and watches. Sales of branded merchandise will also be available through the company's website.
Innovative pricing has also been central to the company's success. SpiceJet started off its services with a revolutionary pricing of Rs. 99 for the first 99 days. This was followed by air tickets priced at Rs. 500 and Rs. 999 -- a pricing strategy that continues. As a result, the airline's prices compete with first-class Indian railway fares.
"SpiceJet's focus on technology innovation ranges from the choice of the aircraft to the winglet design," remarks Siddharth. "Boeing 737-800 and 737-900 are the preferred aircraft models for reasons of operational efficiency and fuel economy, with the latter introduced last year to carry more loads in busy, slot-constrained airports, such as Mumbai, to better utilise existing slots."
SpiceJet has also focused on the curved winglet design which reduces noise and improves fuel economy by 2-3 per cent. The company has also expanded inner aircraft room by reducing unnecessary storage areas and allotting them to passenger seats.
"A disciplined crew, well-trained ground personnel and courteous check-in staff make SpiceJet the preferred low-cost airline," states Siddharth. "While there is stiff competition in the low-cost carrier market in India, the competitive edge for SpiceJet lies in the quality of service offered during the flight. This has resulted in 42% repeat flyers, 45% of business travel and over 90% of passengers recommending the airline through word of mouth."
Research Methodology: To select the Award recipient, analysts quantify several market factors for each market participant according to predetermined criteria, paying close attention to their combined operations efforts. This includes interviews with market participants, customers, and suppliers, along with extensive secondary & technology research. The companies' efforts are then analysed, basis the number of new customers, new segments, and commitment to business expansion coupled with market growth.
In addition to the above, there are specific criteria used to determine final competitor rankings in this industry. The recipient of this Award has excelled based on one or more of the following criteria:
-- Proof of success executing a restructuring strategy
-- New market penetration (geographic, product, etc.)
-- Marketing, promotion, and visibility of the company
-- Degree of strategy innovation
-- Technological innovation and leadership
-- Increased name recognition
-- Revenue and market share growth
Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.
SpiceJet is India's 'best low cost airline' *, delivering the lowest air fares with the highest consumer value. We operate 98 flights daily to 17 cities viz. Ahmadabad, Bangalore, Bagdogra, Chennai, Coimbatore, Delhi, Guwahati, Goa, Hyderabad, Jammu, Jaipur, Kolkata, Mumbai, Pune, Srinagar, Varanasi and Visakhapatnam. Our on-time performance is amongst the best in India, at 82%, coupled with a Technical Dispatch Reliability of 99.6% making us an airline with least cancellations. SpiceJet's new generation fleet of 15 Boeing 737-800 / 737-900ER aircraft are backed by cutting edge technology and infrastructure to ensure the highest standards in safety and operating efficiency.
-- SpiceJet is among the Top Ten Best Budget Airlines in Asia as recognized by Smart Travel Asia magazine (Sept 2008) Hong Kong
-- SpiceJet voted the Best Low Cost Airline by a reader's survey conducted nationally by India's leading travel magazine Outlook Traveler. (Feb 2008), India
-- *SpiceJet was recognized as Best Low Cost Airline by TAFI (Travel Agents Federation of India)-Abacus, awarded at Kota Kinabalu, (Sept 2007),Malaysia.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership(TM) empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com
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