Will 'Spiceflex' scheme help Spicejet turnaround in black?

Spicejet is trying every trick in the book to return to profitability. Recently, the airline became the first LCC to offer 'premium economy' seats on its aircraft with larger leg space of 36 inches and now, in an effort to boost bookings from corporate passengers and frequent flyers

Air Asia India may have unleashed a fare-war with super-cheap tickets but Spicejet has decided to take the battle for the skies a notch higher reports Firstpost's Sindhu Bhattacharya.

Today, the airlin announced 'Spiceflex' - A scheme that offers 'business class' comforts to passengers at a discounted rate . So, will such measures help India's second largest low cost carrier (LCC) to fly back into the black?

Spiceflex offer is valid for the front half of the aircraft where passengers can avail of multiple add-on services like meals, priority check-in, preferred seating etc for Rs 1500,which is a 50% discount to the amount payable if all these services were to be booked separately.

Moreover, starting today, the airline is also introducing a three-day offer where a passenger can choose to upgrade to Spiceflex at a further discounted price of Rs 749 extra. This offer is applicable for bookings made between June 26 and June 29, 2014 for travel between June 26 and September 2014.

However, considering that Spicejet posted a record net loss of Rs 1003 crore for FY14. So, now the question is will these frequent fare discounts and special offers help the airline turn around?

Promoters of Spicejet have been regularly helping it with funds but that may not be enough. Avaition consultancy Capa estimates a fund requirement of Rs 1200cr for the airline to stay operational, it has been launching frequent discounted fares and other promotional schemes that may help loads, but does it help the airline trim its losses; especially now that AirAsia has also entered the market.

In the past the airline has been in talks with several strategic investors but no investment has materialised till now.

However, for now Spicejet is the one grabbing headlines and all eyes on other LCCs as to whether they too will follow suit with similar offerings. So far, a Goair spokesperson said the airline already offers similar add-on services to its 'business class' passengers for Rs 3500.