Focusing on costs often entails more than just cutbacks.
So although SpiceJet took such obvious steps as freezing salaries and curtailing non-essential expenditure, it also focused on maximising cost benefits.
Globally, fuel costs account for roughly a fourth of an airline's expenses; in India, the proportion is much higher at about 40 per cent, mainly on account of the high local taxes that state governments charge.
Managing fuel consumption, therefore, is critical to profitability.
Also see: Now, Dubai travel gets cheaper