SpiceJet plans more flights, tie-ups with

hotels
Our Bureau

Pune, Sept 21 Additional flights in its existing routes,

package deals with the hospitality segment and may be a
foray into international routes. This is the roadmap that low
cost airline SpiceJet has chalked out for itself for the current
year.

Talking to presspersons, Mr Kamal Hingorani, Vice-

President, Marketing and Planning, SpiceJet, said October
would see the airline starting flights from Pune to Chennai,
Hyderabad and Ahmedabad.

He said Pune-Chennai would be daily direct flights, Pune-

Hyderabad (except Tuesday) and Pune-Ahmedabad would
be every Tuesday. He said there would be four departures
and four arrivals. He said the inaugural fares would be Rs
1,699 for the Pune-Chennai route and Rs 799 for the Pune-
Hyderabad route, excluding taxes.

The Pune-Ahmedabad route was a relaunch as the airline

had discontinued it as it had been a night slot.

The airline also plans flights from Chennai and Kolkata to

Port Blair. There are also plans to connect Pune to Kochi and
Goa.

These flights would be launched after the Pune airport

resurfacing was completed, expected around March 2008.

Mr Hingorani said the airline had reduced its flights on the

Delhi-Mumbai route from six to one.

Mr Hingorani said the airline is in talks with the hospitality

segment in Goa and Kochi. SpiceJet plans to tie-up with
three- and four-star hotels. Mr Hingorani said currently the
airline was only targeting the stand-alone hotels in these
cities for now. These packages are expected to be launched
in three months, he said.

International flights

Mr Hingorani said the airline was awaiting Government’s

approval for beginning its international flights. He said the
airline has identified West Asia and South East Asia to
kickstart its international operations. He said the locations in
South East Asia would probably be Bangkok, Kuala Lumpur
and Singapore while the foremost location in West Asia
would be Dubai.

He said the airline was not targeting outward bound flights

from Delhi or Mumbai but from the tier II cities such as
Ahmedabad, Pune and Coimbatore as there was demand
from these locations. He said that these would be point-to-
point flights.

He said the airline would be bringing in the 737-900 ER

(extended range) into its fold and the first aircraft would join
its fleet in November 2007 and the second one by end of
December.

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At a time when most of the full-service carriers have gate crashed into the
supposedly feasible low-cost model, SpiceJet has decided to go against the
herd. Anish Srikrishna, Sr. VP, Marketing, SpiceJet, highlights the airlines’
differentiated positioning...

4Ps B&M: How important is it for SpiceJet to build a brand and what are the
challenges related to it considering the current turmoil in the sector?
AS: SpiceJet was launched as a carrier that always aimed to provide safe,
value-for-money, comfortable and hassle-free air travel to its travellers. The
brand’s rapid growth over the first four years since it took off has been built
on excellent customer experiences and positive word-of-mouth. But now that
we are doing well and growing, it is important that we expand the brand’s
reach and appeal to our prospective target audience. The challenge has been
to connect with our audience and position the SpiceJet brand as one that
offers more than others in the business.

4Ps B&M: When at a time most of the full-service carriers are moving into
the low-cost and low-fare business model, how do you plan to differentiate
your brand from the increasing competition?
AS: Almost all the airlines today are highlighting the ‘low-fare’ factor as a
differentiator. However, we want to place ourselves differently and aim to
position our brand as one which caters many services, apart from providing
low fares to the customers. The idea is to develop a brand that delivers value
beyond the price point. And to achieve that, we are not only providing a safe,
modern and young fleet who deliver services in a more efficient and friendly
manner with on-time service; but are also committed to listen to our
customers so that we offer experiences that they value. All these positive
experiences keep the brand alive and fresh in the minds of our travellers.
Thus, such kind of positioning definitely cuts through the clutter in a sector
that is driven by competitive pricing, which have threatened to commoditise
the brands.

4Ps B&M: Is your latest ‘Get More When You Fly’ campaign in line to highlight
the same?
AS: Our latest campaign definitely highlights SpiceJet’s unique value
offerings for our fliers. When we say ‘Get more,’ we mean that we offer more
intangible services to our customers like providing complimentary supervision
for minors travelling alone, allowing web check-in without any extra cost,
savings on return fares, waiver for sports kits and even selling hot tea and
coffee in flight at 30,000 feet at a very reasonable price of Rs.20, et al.

4Ps B&M: What is the marketing mix adopted by SpiceJet to gain maximum
reach for its marketing initiatives?
AS: We are looking at a 360-degree approach for our marketing initiatives so
as to achieve maximum reach and communicate to all our travellers. For our
latest campaign, we are looking at various Indian magazines, radio channels,
print, outdoor, et al.

4Ps B&M: How much budget have you earmarked for your advertising and
brand building initiatives?
AS: Well, I cannot give you an exact number but we nearly spend about 3-
5% of our annual turnover on our advertising and brand building exercises.

SpiceJet Flies to the Top with Frost & Sullivan Award

New Delhi & London, November 10:- 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 prefer#B50229 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

#B50229uces noise and improves fuel economy by 2-3 per cent. The
company has also expanded inner aircraft room by #B50229ucing
unnecessary storage areas and allotting them to passenger seats.

"A disciplined crew, well-trained ground personnel and courteous

check-in staff make SpiceJet the prefer#B50229 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 offe#B50229 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 p#B50229etermined 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.

About SpiceJet

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.Visit www.spicejet.com

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™ 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.