karan69
Posts: 2699
Joined: Mon Oct 04, 2004 7:57 pm

SpiceJet 738 Breakeven Load At 80%....

Fri Nov 18, 2005 12:57 pm

Hi Guys came across this article in the economic times regarding their new Southern India services, but the most astonishing factor was that at the end of the article where it says their break even load on their 738s configured in 189 seats is 80%....... Would like to hear youe views on this

Is it the same with the other famous LCC like Easyjet,FR,WN and also the "middle class" carriers like B6 and Kingfisher airlines

http://economictimes.indiatimes.com/articleshow/1293157.cms

Quote:
On being asked how SpiceJet prepares to meet the competition, Sharma said that the fare was 40 per cent less than other airlines. The airline fleet comprises of Boeing 737-800s with 189 single configuration and a breakeven of 80 per cent.
 
LAXDESI
Posts: 2775
Joined: Sat May 14, 2005 8:13 am

RE: SpiceJet 738 Breakeven Load At 80%....

Fri Nov 18, 2005 3:20 pm

I remember reading somewhere that Kingfisher has a load factor of 90% plus on most of their routes. Breakeven in terms of seats would depend on the average yield per seat. Assuming similar yields and cost structure for Kingfisher and Spicejet, it is safe to assume that Kingfisher is currently making a profit.
 
Nimish
Posts: 2891
Joined: Mon Feb 14, 2005 6:46 pm

RE: SpiceJet 738 Breakeven Load At 80%....

Fri Nov 18, 2005 4:02 pm

So long as they keep their fares low, they should be able to get this kind of load. My recent 0S flights showed that they have enough feed on the secondary sectors (like DEL-AMD or AMD-BLR) to fill any seats that are not filled on the DEL-BLR sector.
Latest Trip Report - GoAir BLR-BOM-BLR
 
User avatar
AirIndia
Posts: 1076
Joined: Sun Jan 14, 2001 2:43 am

RE: SpiceJet 738 Breakeven Load At 80%....

Fri Nov 18, 2005 4:07 pm

Quoting Nimish (Reply 2):
they have enough feed on the secondary sectors

No wonder, breakeven at 80% ...

but there could be other factors too like landing rights etc in AMD... would that not affect?
 
cricket
Posts: 2075
Joined: Thu Aug 04, 2005 8:23 pm

RE: SpiceJet 738 Breakeven Load At 80%....

Fri Nov 18, 2005 4:34 pm

The advantage with SpiceJet is that unlike the rest of the low-cost competition, they are a listed company. Ergo, they have to release their earnings results to the Stock Exchanges the BSE (www.bseindia.com)and NSE (www.nseindia.com). SpiceJet has a Financial Year ended June, but for the first quarter of the current fiscal their results were like this...
At http://www.bseindia.com/qresann/resu...ET+LTD&quarter=SQ2005-2006&type=47
Sales of Rs 572.61 million
Other Income of Rs 90.04 million
Total Income of Rs 662.64 million
Expenditure of Rs (-)752.72 million
Operating Profit of Rs (-)91.04 million
Gross Profit of Rs (-)96.99 million
Profit Before Tax of Rs (-)106.49 million
Net Profit of Rs (-)108.11 million
Even if you include the cost of starting up new stations, SpiceJets numbers are quite interesting to the state of the Indian Low-Cost community! However, to be fair, their losses have come down considerably from the last quarter when they had a Net Profit of Rs (-)237.17 million.
A300B2/B4/6R, A313, A319/320/321, A333, A343, A388, 737-2/3/4/7/8/9, 747-3/4, 772/2E/2L/3, E170/190, F70, CR2/7, 146-3,