Ajay Singh, CMD, Spicejet
SpiceJet reported a profit of INR 239.99 crore for the three months ended December 31st, 2017 as against INR 181.14 crore in the same quarter last year, making it the 12th successive profitable quarter for the airline. Profits grew by 32% against a capacity growth of 14% during this period as against the same quarter last year. The strong quarterly results were aided by a higher passenger load factor and a healthy increase in passenger yields despite a substantial rise of 17% in crude oil prices, a one-time expense of Rs. 25 crores and an inflationary increase of 3% in other costs. The Company witnessed a 14% increase in its passenger yields (Revenue per Available Seat Kilometer) while its average domestic load factor was 95%. SpiceJet has recorded more than 90% load factor for 33 successive months, a feat unparalleled globally. SpiceJet reported operating revenue of INR 2,081.95 crore in the quarter. On an EBITDA basis, SpiceJet reported a profit of INR 330.73 crore. On an EBITDAR basis, the Company reported a profit of INR 597.04 crore. Ajay Singh – CMD, SpiceJet said, “Twelve successive profitable quarters, record aircraft orders, industry’s best load factor, high ontime performance and constantly exploring new growth avenues – SpiceJet remains firmly on track on its long term growth strategy. This has been yet another great quarter for us and I am very pleased with the exceptional performance of my team.” With many firsts to its credit for the October-December quarter, SpiceJet became the only airline to commence daily direct operations on the international sector of AhmedabadBangkok. It was also the only player to introduce daily non-stop flights on Delhi-Jodhpur, Jaipur-Jodhpur, Ahmedabad-Varanasi, Kolkata– Jabalpur, Bengaluru–Puducherry and Bengaluru-Bagdogra sectors among others. On UDAN, the Company secured additional 20 routes that will further increase its foot print in regional operations. Some of the exclusive routes awarded to SpiceJet include Delhi-Darbhanga, Mumbai-Darbhanga, Delhi-Pakyong, Chennai-Tanjore, Delhi-Kishangarh among others. The company is close to starting its Delhi-Adampur and Delhi-Kanpur UDAN flights. The quarter also witnessed SpiceJet, the country’s largest regional player, conduct successful seaplane trials in Mumbai and Vijayawada and launch its fourth flight under UDAN connecting Jaipur-Jaisalmer. Key Business Updates The Company is building its own training campus for its proposed expansion which will reduce its training costs by 50% in addition to consolidating its training operations. Before December 2018, the company plans to add 12-15 Boeing 737 aircraft and 6-9 Bombardier Q400 aircraft to its existing fleet of 38 Boeing and 22 Bombardier Q400 aircraft. The new generation Boeing 737 Max aircraft will start delivering from August 2018 that will reduce the overall costs by around 8-9% on each aircraft. On the Bombardier Q400 aircraft, which starts delivering from September 2018, the seat count has
been increased to 86 seats (from the current 78 seats). This will enhance the seats flown in the regional and UDAN routes.
SpiceJet CMD Ajay Singh gets the CAPA Chairman’s Order of Merit for Excellence in Indian Aviation Award
SpiceJet Chairman and Managing Director, Ajay Singh today received the prestigious CAPA Chairman’s Order of Merit for Excellence in Indian Aviation Award for his contribution towards Indian aviation and the remarkable turnaround and financial performance of SpiceJet at an event in Mumbai. The CAPA Chairman’s Order of Merit for Excellence in Indian Aviation was initiated last year to recognise and bring attention to notable achievements by Industry players. “I am honoured to receive this award. This is recognition of SpiceJet’s spectacular comeback. This award belongs to each and every SpiceJetter who has worked with such passion and dedication in the last three years,” said Ajay Singh, CMD, SpiceJet. Ajay Singh has scripted one of the most remarkable turnaround stories of recent times. SpiceJet was on the verge of shutting down in December 2014, having cancelled hundreds of flights, when Mr Singh stepped in and gave it a new lease of life. From staring at an imminent closure to achieving 11 quarters of profit and a load factor of over 90% every month for 33 months in a row (a global aviation record), SpiceJet’s turnaround story under the leadership of Ajay Singh, has been one which probably has no parallel in the aviation world today. “SpiceJet has had a magnificent journey since Ajay Singh took over and rescued the airline from near closure, to a track record of 11 consecutive quarters of profitability,” said Peter Harbison, Executive Chairman, CAPA – Centre for Aviation. “Not only has the operational performance improved significantly, but SpiceJet has maintained profitability through its operations and is poised for growth with more than 200 aircraft on order. The turnaround of SpiceJet has not only been a great success story for the company, but it has improved confidence in the Indian industry overall,” Harbison added. CAPA tracks the industry in India on a 24x7 basis right across the value chain through their established consulting and research operations in the region.
SpiceJet awarded 17 proposals and 20 new sectors under the second round of bidding for UDAN
SpiceJet, the country’s favourite low-cost carrier and the largest regional player, was today awarded 17 proposals and 20 new sectors under the second round of bidding for the Government of India's UDAN Regional Connectivity Scheme. Out of these 20, 15 will cater to unserved markets of Kannur (Kerala), Darbhanga (Bihar), Ozar (Nashik), Pakyong (Sikkim), Kishangarh (Rajasthan), Lilabari (Assam), Thanjavur (Tamil Nadu), Bokaro(Jharkhand) and Solapur (Maharashtra) whereas 5 will be for underserved markets of Hubli (Karnataka) and Jaisalmer (Rajasthan). “SpiceJet has been one of the most enthusiastic supporters of UDAN since the very beginning. We are delighted to be a part of the regional connectivity scheme, which, we believe, is an excellent initiative of our Prime Minister Shri Narendra Modi. We see tremendous potential in the routes that we have been awarded today and look forward to beginning operations very soon,” said Ajay Singh, CMD, SpiceJet. SpiceJet with its fleet of 22 Bombardier Q400 aircraft, which have a seating capacity of 78, is India’s largest regional player. The airline placed an order for 50 Q400s last year, deliveries for which will begin later this year. Last year, SpiceJet was awarded six proposals under the first phase of the UDAN scheme and was the only participating airline that did not seek viable gap funding from the government. SpiceJet has launched operations on four UDAN routes that include Mumbai-Kandla, MumbaiPorbandar, Hyderabad-Puducherry and Jaipur-Jaisalmer.
Ajay Singh, CMD, SpiceJet
Peter Harbison, Executive Chairman, CAPA