SPICE JET

SpiceJet is Indian low-cost airline headquartered in Gurgaon, Haryana. It is the second largest

airline in the country by number of domestic passengers carried, with a market share of 13.6%
as of March 2019. The airline operates 630 daily flights to 64 destinations, including 54 Indian
and 15 international destinations from its hubs at Delhi and Hyderabad.
Established as air taxi provider ModiLuft in 1994, the company was acquired by Indian
entrepreneur Ajay Singh in 2004 and re-christened as SpiceJet. The airline operated its first flight
in May 2005. Indian media baron Kalanithi Maran acquired a controlling stake in SpiceJet in June
2010 through Sun Group which was sold back to Ajay Singh in January 2015. The airline
operates a fleet of Boeing 737 and Bombardier Dash 8 aircraft
The origins of SpiceJet can be tracked back to March 1984 when the company was established
by Indian industrialist S. K. Modi to provide private air taxi services. On 17 February 1993, the
company was named as MG Express and entered into technical partnership with the German
flag carrier Lufthansa. The airline provided passenger and cargo services under the name
of Modiluft before ceasing operations in 1996.

Ownership and structure

SpiceJet Limited is publicly traded under NSE: SPICEJET, with a market capitalization of about
₹2,214.28 Cr as of 1 April 2020.
On 30 March 2020, HDFC Mutual Fund bought 3.4 crore shares of SpiceJet from the open
market constituting 5.45% stake.

Headquarters
SpiceJet is headquartered in Gurgaon, India. Ajay Singh serves as the Managing Director of the
airline since January 2015. The airline's logo consists of 15 dots arranged in three rows of five
each in the order of their reducing sizes on a red background. In June 2015, the airline unveiled
its current logo with a new tagline Red. Hot. Spicy. SpiceJet names all its aircraft with the name
of an Indian spice.
 SpiceJet Fleet

Passengers Notes
In
Aircraft Orders
Service
C Y Total

18
Airbus A320-200 2 — — 180 On wet lease from BH Air[31]
0

1 35
Airbus A330-900neo 1 — 371 On wet lease from Hi Fly[32]
8 3

12
4 — 8 134
6
Boeing 737-700
14
3 — — 149
9

18
8 — — 186
6

18
Boeing 737-800 28 — — 189
9

1 15
18 — 168
2 6

2 13
Boeing 737-900 1 — 167
8 9

21
Boeing 737-900ER 4 — — 212
2

18
Boeing 737 MAX 8 13 192[33] — 189 Currently Grounded[34]
9

De Havilland Canada
19[35] — — 78 78
Dash 8 Q400

De Havilland Canada Order with 25 purchase

10 15 — 90 90
Dash 8 Q400 NextGen rights.[36]

SpiceXpress Cargo fleet[37]

Airbus A340-300F 1[38] — Cargo

Boeing 737-700BCF 3 17 Cargo Deliveries through 2022

 Launch customer in India for
Boeing 737-700BDSF
the 737-700 freighter[39]

Boeing 737-800BCF 1 — Cargo

De Havilland Canada
3 — Cargo
Dash 8 Q400F[40]

Total 118 225

SpiceJet placed its first firm order for 20 Next-Generation Boeing 737-800s in March 2005, with
deliveries scheduled up to 2010. In November 2010, the airline ordered 30 Boeing 737-800s. On
9 December 2010, Bombardier Aerospace announced that SpiceJet had placed a firm order for
fifteen Q400 NextGen turboprop airliners with options for another fifteen. SpiceJet used its fleet
of Q400s for short-haul operations.
In March 2014, the airline signed a US$4.4 billion deal with Boeing for the procurement of 42 737
MAX 8 aircraft. In 2015, SpiceJet was in talks with both Boeing and Airbus for a possible order of
more than 100 single aisle aircraft, either Airbus A320neo or the Boeing 737 MAX with the same
being confirmed by Managing Director, Ajay Singh, in a conference in Dubai.]
In January 2017, the airline placed a firm order for 100 737 MAX 8 aircraft, and revealed itself as
the airline behind the 13 MAX 8 aircraft previously attributed to an unidentified customer, taking
its total order to 155 MAX 8 aircraft with purchase rights for 50 additional MAX 8 and wide-body
aircraft. The budget carrier plans to grow its operational fleet to 200 airplanes by the end of the
decade and expand regionally with the new 737 MAX family of airplanes.
In June 2017, the airline signed a letter of intent with Bombardier at the 2017 Paris Air Show, to
purchase up to 50 Q400 aircraft, catering to growth in passenger traffic arising from its
participation in the Indian government's UDAN regional connectivity scheme.
It is announced to induct 16 Boeing 737-800 NG in response to fulfil demands in local and
international expansion. It was ordered due to the fleet of 737 MAX being currently banned and
the downfall of Jet Airways. Due to the closure of all Jet Airways flights they have place orders
for 6 additional Boeing 737-800 NG and 5 more Bombardier Q-400 in Dry Lease to cover the
shortage in the Indian aviation industry.
Services
SpiceJet has moved away from the typical low-cost carrier service model of economy class-only
seating. The airline offers premium services under the name Spice Max, whereby passengers
can obtain additional benefits including pre-assigned seats with extra legroom; meals on board;
priority check-in and boarding; and priority baggage handling; at a higher fare. Otherwise
SpiceJet does not provide complimentary meals in any of its flights. It does sell full in-flight meals
on some flights.[49] SpiceJet operates its frequent-flyer programme but does not provide any in-
flight entertainment options.

Spice Xpress
Spice Xpress is the air cargo division of SpiceJet. The cargo airline was launched in September
2018 and commenced services on the Delhi-Bengaluru-Delhi route with a Boeing 737-700.
Spice Xpress began services between Guwahati and Hong Kong on 19 January 2019 becoming
the first airline to operate freight services between Northeast India and Southeast Asia. Spice
Xpress took delivery of its first 737-800 Boeing Converted Freighter (BCF) in September 2019,
becoming the first South Asian carrier to induct the converted freighter into its fleet.
SWOT ANALYSIS

STRENGTHS WEAKNESS
 Power to fly  High competition
 Safety features  Limited destinations
 Dynamic fare structure  Wrong decisions
 Good reachability  Frequent offers
 Good market presence

OPPORTUNITIES THREATS

 Low airfare, hence more  Strong competition

passengers  Fuel increase
 More routes and destinations  Change of government policies

 Having international partnership

 Growing interest in tourism

Spice jet Ltd Share Holding as on 30-06-2020

Category No. of shares Percentage

Promoters 359,609,068 59.93

Foreign Institutions 5,099,178 0.85

NBFC and Mutual Funds 57,020,317 9.50

Others 33,406,286 5.57

General Public 143,848,297 23.97

Financial Institutions 1,093,153 0.18

Porter’s five force model

Pest analysis
Covid 19 impact
 The airline had reported a profit of ₹262.89 crore during the same period of the previous
year
 The auditors said that the company would have reported a wider loss in the June quarter
had it not recognized other income and foreign exchange gains
 As most aircraft stand parked amid the outbreak of coronavirus (Covid-19) pandemic,
March quarter of financial year 2019-20 (Q4FY20) could be first among the many
loss-making quarters for the aviation sector, fear analysts.
 Almost all airlines, including IndiGo and SpiceJet, had drastically cut operations by
mid-March, and had begun grounding fleet as net bookings fell into negative —
meaning there are more cancellations than fresh bookings on domestic routes. It all
came to a complete halt when the government on March 25 imposed a ban on
domestic air travel to stem the spread of the virus. This was on top of a ban on
international flights which had been in place since March 22.
 According to Gagan Dixit, research analyst at Elara
Capital, IndiGo and SpiceJet could report a cumulative net loss of Rs 3,350 crore in
Q4FY20, as against a profit of Rs 570 crore in Q3FY20 and Rs 650 crore in Q4FY19.
 “We expect a YoY yield decrease of IndiGo by 8 per cent and SpiceJet by 10 per
cent on lower airfare amid fear of Covid-19 keeping airfares in check, nil fleet addition
by SpiceJet and subdued 1 per cent fleet addition by IndiGo,” he wrote in a sector
preview note.

Understanding Technical Indicators

 RSI(14)
 Stands for Relative Strength Index. It is a momentum indicator used to identify
overbought or oversold condition in the stock.Time period generally considered is 14
days. RSI reading below 25 is interpreted as oversold. RSI between 25 & 45 is
interpreted as a bearish condition. RSI between 45 & 55 is interpreted as a neutral
condition.RSI between 55 & 75 is interpreted as a bullish condition. RSI reading greater
than 75 is interpreted as an overbought.
 (12,26,9)
Stands for Moving Average Convergence Divergence.It is a trend following momentum
indicator. For calculation three moving averages are taken which are 9 day EMA, 12 day
EMA & 26 day EMA. The 26 day EMA subtracted from the 12 day EMA alongwith the 9
day EMA which is the "signal line", together give buy/sell signals. If the MACD is above 0
and crosses above the signal line it is considered to be a bullish signal. If the MACD is
below 0 and crosses below the signal line it is considered to be a bearish signal.
 Stochastic(20,3)
It is a momentum indicator. It shows the location of the close relative to the high-low
range over a set number of periods. Time period generally considered is 20 days.
Readings above 80 indicate a security is overbought. Readings between 55 & 80 indicate
Bullish condition. Readings between 45 & 55 indicate Neutral condition.Readings
between 20 & 45 indicate Bearish condition.Readings below 20 indicate a security is
oversold.
 ROC(20)
It stands for Rate of Change. It is a momentum oscillator that takes the current price and
compares it to a price "n" periods ago. Time period generally considered is 20 days. The
ROC is plotted against a zero line that differentiates positive and negative values. Value
above 0 indicates Bullish condition. Value below 0 indicates Bearish condition. Value
equal to 0 indicates Neutral condition.
 CCI(20)
It stands for Commodity Channel Index. It gives an indication of trend change & also the
momentum within the trend. Time period generally considered is 20 days.CCI is relatively
high when prices are far above their average & relatively low when prices are far below
their average. The CCI typically oscillates above and below a zero line, above zero line it
enters into positive territory & below zero into negative territory. Normal oscillations will
occur within the range of +200 and −200. Readings above 200 imply an overbought
condition, while readings below −200 imply an oversold condition. CCI between -200 &
-50 implies a bearish condition. CCI between -50 & 50 implies neutral condition. CCI
between 50 & 200 implies bullish condition.
 Williamson%R(14)
It is a momentum indicator which indicates the current closing price of the stock in
relation to its high & low of the past 14 days. Its purpose is to tell whether a stock is
trading near the high or the low, or somewhere in between of its recent trading range.
Readings between 0 and -20 imply an overbought condition, readings between -20 to -50
implies bulish condition, readings between -50 to -80 implies bearish condition and
readings between -80 to -100 imply oversold position.
 MFI(14)
It stands for Money Flow Index. It is a momentum indicator that measures the flow of
money into and out of a security. Time period generally considered is 14 days. MFI
considers both price & volume to measure buying and selling pressure. Very high MFI
that begins to fall below a reading of 80 while the underlying security continues to climb is
a reversal signal to the downside. Conversely, a very low MFI reading that climbs above
a reading of 20 while the underlying security continues to sell off is a reversal signal to
the upside.
 ATR(14)
Stands for Average True Range. It is a volatility indicator which indicates the degree of
price volatility at an absolute level compared with its 9 SMA. Time period generally
considered is 14 days. If the value is greater than its 9 SMA it considered to be Highly
 Volatile. If the value is less than equal to its 9 SMA it is considered to be Less Volatile. It
does not provide any indication of price trend.
 ADX(14)
It stands for Average Directional Index. It indicates only the trend strength. It is a lagging
indicator; that is, a trend must have established itself before the ADX will generate a
signal. Time period generally considered is 14 days. When the ADX line is rising, trend
strength is increasing, and the price moves in the direction of the trend. When the line is
falling, trend strength is decreasing, and the price enters a period of retracement or
consolidation.A falling ADX line only means that the trend strength is weakening, but it
usually does not mean the trend is reversing.
 Bollinger Band(20,2)
Stands for Bollinger Bands. It is a technical analysis tool defined by a set of lines plotted
two standard deviations (positively and negatively) away from a simple moving
average.The upper and lower bands are typically 2 standard deviations +/- from a 20-day
simple moving average.It is believed the closer the prices move to the upper band, the
more overbought the market, and the closer the prices move to the lower band, the more
oversold the market. Approximately 90% of price action occurs between the two bands.
Any breakout above or below the bands is a major event. The breakout is not a trading
signal.
Summary
SpiceJet’s mission is to become India’s preferred low-cost airline, delivering the lowest air fares
with the highest customer value, to price sensitive customers.We hope to fulfill everyone’s dream
of flying!
With India's economic and business growth, the percentage of traveling population is
burgeoning.More and more Indians are traveling for both business and pleasure and everyone
needs to save both time and money.SpiceJet's vision is to address that and ensure that flying is
for everyone.
The power to fly for everyone
With a dynamic fare structure, SpiceJet offers fares that are affordable and significantly lower
than most airlines.With contemporary interiors, modern graphics and vibrant colours, SpiceJet is
very much like today’s traveler - practical yet stylish.A SpiceJetter will feel ‘this is the smart,
international way to travel, I've made the smart choice’.SpiceJet is committed to make sure you
feel good at the end of a flight, arriving at your destination - fresh and on time.
The power of performance.
From aircraft to crew and ground staff the focus is on performance.Each SpiceJet employee is
groomed to be smart, friendly, efficient and well-informed, ensuring that any interaction will make
you feel welcome and looked after.Experienced pilots, well-trained cabin crew will make every
flight a comfortable one.The philosophy is no-frills but high-performance.
The power of safety
SpiceJet invests heavily in safety, impeccable maintenance and a high level of
expertise.Experienced pilots, engineers and maintenance crew go through rigorous training and
are hand-picked for their technical knowledge and expertise.So you can rest assured that there is
no cut-back in this key area of modern day flying.
The power behind the power to fly
SpiceJet's key management personnel are all senior, seasoned professionals and have
significant international experience in both launching and managing low-cost airlines.With
thousands of cumulative man hours in the industry, the management is committed to bring to
customers in India all the benefits of the global revolution in the skies.SpiceJet aims to make
travel comfortable, affordable and refreshingly efficient experience for all.