Spice jet awarded for excellence in cost management

On 17th March’09 Spice jet won the ICWAI award for excellence in Cost Management. The Ministry of Corporate Affairs, presented the award. Spice jet was one out of the three companies who won the award. The people from industry, Academia and Administration were the Jury who selected Spice jet and awarded it with an excellence award. The selection was done on the basis of adapting better practices for resource management, efficient utilization of capacity, working capital and R&D efforts done by the airlines.

The Chief Executive officer of Spice jet said that he was very much delighted after winning the award. They were always concerned with the capital i.e. the investment and the gains they are getting in return, this is why Spice jet airlines is the lowest operating carriers in the airlines industry. Other airlines should work on the operating costs to get profits out of what they invest.

Air India to join Star Alliance by year 2010

Air India has to join Star Alliance by March’09 but now it has been delayed by a year, and it will join Star by 2010. According to an official the earlier merger of Air India and Indian Airlines has not been found useful yet, as there has been a confusion about the work duties between the two airlines. The Star and Air India has to integrate their IT platforms under one common system , but Air India still hasn’t confirmed about which platform they will be using.


A news report by a Delhi based news agency suggests that Ministry of Civil Aviation is found to be upset that talks are on with Jet Airways to join Star, as it would put Air India at a disadvantage. A Jet spokesperson said that the Jet Airways was evaluating various options, over the years Jet has decided not to align itself to a specific alliance rather go with code sharing and independent alliances. Star, at the onset, had not ruled out other Indian partners.

5% rise in airfares found in quarter four last year

It was heard that Indian airlines claimed of slashing flights airfares after ATF prices came down but it has been revealed by an exclusive industry report that airfares actually risen by 5%. A report named The American Express Asia Pacific Business Travel Monitor report, revealed that due to reduction in competition and falling rupee has let airfares to increase quarter on quarter which is effective on selected categories only.

Moves have been made by domestic airlines in India to reduce fares and make it cheap flights, after ATF reduced by almost 50% last year due to fall in prices of crude. This reduction in airfares is effective only on certain categories, while in most of the segments it has been increased. Fares in India rose by 5% which is the highest quarterly rise of airfares across Asia Pacific region. Whereas full business class airfares shown 10% quarter –on-quarter increase in airfares. India published fares rose 15% on year, while they rose 26% in domestic and 13% in Intra Asia Pacific.