Spicejet which is one of the largest airline in the country by no. of domestic passengers, has increased their cargo business and introduced door to door delivery service for their corporate customers. Cargo and logistics is a growing business for spicejet. They used to outsource the business but they are now handling it themselves. They have tie up with courier firms and made new recruitment’s for door to door cargo delivery.
Spicejet was on the verge of closure in 2014, but they managed a comeback. They came back not only with on the back of passenger’s revenue but also on the ancillary business front. At the beginning of 2015, it was at six percent where the spicejet revenue from the ancillary business stood. It increased to 16 percent at the end of October December. The management team looked for other sources of income to maintain their growth.
Spicejet posted consecutive profitable result with Rs 232 crore profit. The airline currently has many aircraft’s which include mix of Boeing 737, Airbus A-320 and Bombardier Q-400 aircraft. To recover the lost ground, spicejet recruited 70-80 pilots and invested in pilot training academy. They got into exclusive agreement with eCommerce to deliver products. Airlines are necessary for the eCommerce firms. They need airlines for the delivery of their goods to their customers as well as get delivery from various suppliers. The main thing they needed is the air connectivity.
Cargo operations form an intrinsic part of their business. They are confident that the technology platform will add their efficiency and will ensure that their shipment / goods are tracked well i.e. from the point of booking to point of delivery. More common user terminals are made by spicejet across various airports in country. This will enhance the movement of domestic cargo and standardize cost. Reliant Institute of logistics provides Logistics and Supply Chain Management Courses in kochi