SpiceJet Spreads its Wings

Monday, 6th January 2014 at 13:33pm

In early December of last year, the two airlines inked a deal that would allow both airlines to sell each other's tickets, enabling them to grow their market base beyond their own network.

SpiceJet will take advantage of Tigerair's extensive route network across Southeast Asia and China while Tigerair will have the opportunity to tap the extensive route network of SpiceJet across India.

Singapore Airlines has a 33% stake in Tigerair.

The partnership will give passengers from both airlines the opportunity to travel between Asia's most dynamic regions seamlessly.

Singapore is a major hub in Asia, serving as a major crossroads in the region. That being said, SpiceJet will be able to serve its customers from India who want to travel to Singapore and beyond with relative ease and comfort owing to Tigerair's extensive footprint across Southeast Asia and China.

In the same token, Tigerair will also be able to tap SpiceJet's vast route network across India. SpiceJet currently covers almost all major and Tier II cities in Indian subcontinent with 47 destinations plus 10 more destinations overseas.

In the current hub and spoke network of SpiceJet in India, travelers from 14 destinations in the country will get the chance to enjoy more comfortable connection between India and Southeast Asia. While Hyderabad is connected directly to more than 20 local destinations, Tigerair can only sell tickets to 14 of those routes, based on the agreement.

Travelers originating from the 14 domestic destinations landing at Hyderabad airport going to Singapore will now have an easy access and seamless connection to Tigerair's 22 destinations across Southeast Asia and China.

According to Sanjiv Kapoor, SpiceJet's Chief Operating Officer, the partnership between the two airlines will certainly boost passenger loads as well as reduce costs substantially as they don't need to set up offices to sell tickets.

The airline executive also said that SpiceJet is also exploring talks with other foreign carriers for similar partnership to continually expand its market base. He further said that the airline is currently enjoying a load factor of 70%. With its partnership with Tigerair, it could go up.

Tigerair's load factor, meanwhile, is between 70 and 80%. Similarly, it is expected to increase with its partnership with SpiceJet especially now that India is among the world's fastest-growing travel market.

Following the tie-up with Tigerair, SpiceJet is looking forward to handle an additional 200 passengers daily between Singapore and Hyderabad, subsequently increasing its overall revenue as well by up to 6% during its first year.

SpiceJet has a fleet of 57 aircraft, 42 of which are all Boeing B737 jets. The remaining 15 are all turboprops, Bombardier Dash 8 Q400.

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