SpiceJet to add do­mes­tic cargo ser­vice

The low-cost car­rier is all ready to cater to the grow­ing e-commerce sec­tor with a ded­i­cated freighter ser­vice that will give a boost to the rev­enues.

Cargo Talk - - Air Cargo -

Keep­ing in mind the grow­ing ecom­merce space, low cost car­rier Spice Jet has plans to add do­mes­tic cargo ser­vice to its port­fo­lio. The car­rier has yet to un­veil which air­craft it will use for this ser­vice. At present, it op­er­ates a mix of 737s, Bom­bardier Q-400s and A319 pas­sen­ger air­craft and car­ries cargo in the bel­lies of this cur­rent fleet.

As the Q400s just sit at night, SpiceJet plans to put the pas­sen­ger Q400s into overnight all-cargo ser­vice on the seats be­tween Delhi and Ben­galuru. Cur­rently, SpiceJet's cargo rev­enue is three to four per cent of pas­sen­ger rev­enue. But with the launch of the do­mes­tic cargo ser­vice, the rev­enues could go up by eight to 10 per cent of pas­sen­ger rev­enue.

SpiceJet’s cargo up­lift grew with the rise in the e-commerce sec­tor. Do­mes­tic air freight vol­ume grew to 18 per cent be­tween FY2014-2015. At present, the only air cargo car­rier in the coun­try is Blue Dart. It has five 757s.

SpiceJet re­ported a profit of ` 71.8 crore for the quar­ter that ended on June 30, as com­pared to ` 124.1 crore loss it posted dur­ing the same pe­riod of the pre­vi­ous year. It cut costs by 42 per cent dur­ing the last year and the drop in fuel prices helped.

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