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 Home > GOLDBOOK > GOLDBOOK 2007 > SpiceJet: 'Service providers have become the punching bags of the industry'
  GOLDBOOK 2007
SpiceJet: 'Service providers have become the punching bags of the industry'
Virender Pal, CTO, SpiceJet
Monday, March 12, 2007

SpiceJet's mission is to become India's preferred low-cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers. As a leading airline, the challenge for SpiceJet is to go for the best technology that can provide high uptime. What do you comprehend will be the main challenges?
The challenge is not to get the best upgraded technology available in the market. Rather the challenge is to get the technology best suited for our requirements and needs. For example, in an ideal situation we can always go for local solutions in pilot/cabin crew roistering as they save a huge sum of money (Rs 2 crore per year approximately). Instead, we go for high-end upgraded technically designed solutions, which may be new for the industry but the quality measures are high and this helps us to be technically at par with the global scenario. We want the competition to follow us. We do not compromise on technology. SpiceJet's new generation fleet of aircrafts is backed by cutting edge technology and infrastructure to ensure the highest standards in operating efficiency. With maintenance support by KLM and state-of-the-art technology from world leaders like Star Navigation, Russell Adams and Tech Log, there will be no compromise on safety, reliability or on-time travel.

SpiceJet invests heavily in safety, impeccable maintenance and a high level of expertise. How do you rate the quality of services provided by telecom service providers? Do telecom service providers deliver as per service level agreement?
As far as basic services are concerned, telecom service providers provide what is expected to. Many a time, the client hasn't done his/her homework well and ends up paying more money or gets stuck in a cumbersome situation. And then, most of them tend to pass on the buck to the telecom service providers. They have become the punching bags of the industry. However, with our experience we know that if the clients know their requirements, the telecom service providers are good at their job. No complaints what so ever.

The ticketing space is undergoing a lot of changes with web booking taking a dominant position. How do you ensure consistent service across all channels?
Web is our main source of booking. Around 75% of our inventories are through the Web. In fact, recently, a study rated us among the 12 most user-friendly websites. The issue of consistent service across all channels concerned is what gives SpiceJet an edge over other low-frill airlines.

The company has tied-up with Navitaire, the world's renowned low-cost support for reservations and revenue management. E-booking and e-ticketing facilities are available online along with tele-booking. Recently, SpiceJet has also announced the launch of its distinctive online facility-Web Check-in-for all its passengers. To start with, this service would be available at the IGI airport, Delhi, followed by all 14 SpiceJet destinations. The Web check-in service is a convenient way of checking ticket details and printing boarding pass, just like an e-ticket, through SpiceJet's website. This service not only allows passengers to select their preferred seat but also facilitates the printing of the boarding pass for the same day's return flight. This unique Web check-in service provides seamless and hassle free air travel experience. The new facility thereby also helps in making check-in counters at airports less crowded and saves the passengers valuable time.

You have an alliance with Navitaire-a wholly owned Accenture business. Would you elaborate on your alliance?
Navitaire is providing technology and business solutions to the airline industry on an outsourced basis. Navitaire software and services provides the operational backbone of the majority of successful low cost carriers throughout the world. Navitaire's technology allows direct Internet distribution and ticketless travel, and has fueled the growth of low cost carriers. By using tried and true systems, we'll ensure that we bring associated benefits and the lowest fares to the Indian market.

The functioning of the call center reflects one's business and customer satisfaction. Do you agree with that and do you have your own call center?
SpiceJet utilizes state-of-the-art technology to ensure its fleet reliability and safety monitoring are second to none. We have our own call center with a capacity of 500 seats, which is expanding very fast. We do not outsource this service fearing loss of data and quality issues. All our call center employees (or customer care executives) are trained for all sorts of services right from parting information about booking tickets to registering complaints.

Web is our main source of booking. Around 75% of our inventories are through the Web. Recently, a study rated us among the 12 most user-friendly websites

Enterprises generally focus on their main business, they tend to outsource support systems. Have you outsourced your major activities so that you can focus on new technologies?
Except a couple of web-based stuff, nothing is outsourced. Outsourced solutions are less manageable and they lead to high cost in the long run.

What are the new technologies SpiceJet has deployed to support its operations?
SpiceJet, which is aiming to make travel comfortable, affordable and refreshingly efficient, brings with it all the state-of-the-art systems to support its operations in India. It is not just Star Navigation, but the way it will work in association with Russel Adams software systems, Tech-Log logistical management systems and maintenance support from KLM that will make SpiceJet efficient and safe. These technologies allow for the most efficient and up-to-date maintenance practice to be employed to provide for precise in-flight monitoring, enabling a predictive maintenance philosophy. With the installation of the in-flight safety monitoring system, Star Navigation will introduce other modern features for seamless communication and information transfer. Star Navigation has also agreed to launch the world's first WiFi system on-board a SpiceJet aircraft, allowing the aircraft to communicate with the airline's corporate LAN, and enable high speed data downloads and uploads while in the air. Star Navigation will be the first company in the aviation industry to have such a system certified for use on a commercial aircraft.

SpiceJet seems to be setting international standards for global competition. How is India different from other countries?
No, we have no ambition to go global; rather we would like to consolidate in the domestic front with global standards. We are a low-frill airline only in terms of ticket price; otherwise we are better than some of the best full service airlines like Kingfisher. In fact, airlines like SpiceJet, much like the Western Carriers they are modeled on, employ some of the latest and best technologies in the aviation industry to help them achieve their higher fleet productivity levels. These technologies don't just help cut costs through better management of logistics, they also contribute to improved aircraft reliability and enhanced safety monitoring.

Baburajan K
baburajank@cybremedia.co.in

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