SpiceJet aims to increase ancillary revenues; Occupancy to be in 93% range in FY18

SpiceJet has made a debut in the retail segment with the launch of its ecommerce portal called SpiceStyle, which is expected to boost the ancillary business of the company.

Ajay Singh, CMD, Spicejet said in an effort to increase the ancillary revenues, the company has tied up with Amazon. The company also plans to partner with other market places besides Amazon to sell their merchandise and add to the ancillary revenues.

So going forward, the ancillary revenues would grow from the current 16 percent to 18-19 percent of the total revenues, he said.

For their core business, FY18 looks better than FY17 on back of reduction in fuel costs and market continues to grow.

Talking about the UDAN scheme, he said flying to the sectors that don't have flights currently will turn out ot be profitable. They will fly to cities like Kanpur, Jalandhar, Porbandar and Kandla, he said.

Singh is also confident of the occupancy remaining in the range of over 93 percent, which has been the case for the last 24 months.

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