How SpiceJet Airlines makes low cost fare a distinct reality?

There were times when the air travel was fancied as a medium of travel for the rich and the privileged. The pace of economic development, economic prosperity among the people and the requirements of quick travel have made it pertinent for the airlines to open up and service a broader array of customers, thereby increasing their scope of operations to attain more profitability.

The development of airline industry in India has seen segmentation of the airline profiles as per their targeted niches. On one hand, there are the domestic carriers focusing on the hi-end customers who are willing to pay for more and better services during their travel while, on the other hand, there are low cost carriers such as SpiceJet which focus on the budget travelers.

It is interesting to note that the cost of air travel on some routes is almost the same as that of travelling by a AC rail coach. How do the airlines make it possible for people to fly cheap?

These airlines, such as SpiceJet Airlines, are able to devise the low-fare price structure in a number of ways. Some of these essential means are:

1. Fleet Selection: The focused low-cost airlines make careful selection of their aircraft fleet depending upon the levels of operational economy of the aircraft and the number of passengers that can be carried. It is not uncommon to find these carriers being highly selective in their choice of aircraft. Most of the time, the airlines order for single or a few type of aircraft with good fuel efficiency and capable of seating an optimal number of people. By placing bulk order of one type of aircraft, they are also able to negotiate better prices from the manufacturers. Further, the number of optional equipment and devices to be installed is kept at a minimum level in order to keep the costs low.

2. Cutting on service features: SpiceJet airlines do not offer much in terms of in-flight entertainment. Then, there is rationalization of the meals being served on-board depending upon the time of the route and the time of the flight. There might be only one heavy snack meal being served instead of two separate meals. Some other measures might also include careful considerations of the types of the airports served and the timings of the flights keeping in mind the reduced costs of flight handling during the off-peak hours. Some of the other services that might usually face shelving for the sake of maintaining low costs are the refunds or the flight transfers in case of missed flights. So, if you miss the SpiceJet flight, you might have a new ticket for the next flight.

3. More products on offer: Airlines no longer provide only the flights facilities. These also provide tour packages designed with a view to offer value-based services to the clients. For the tourists who would take up more than one of their service, the airlines often provide discounts on flight tickets. Similarly, corporate accounts and group bookings can also be offered at cheaper rates.