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.
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.