There could be rejig at top level at SpiceJet.
No frills airlines SpiceJet and IndiGo have merged fuel surcharge with the base fares, saying it would simplify the prevailing fare structure.
Hit by the third wave of the COVID-19 pandemic and soaring fuel prices, airlines are flying towards record losses with a likely loss of a whopping Rs 20,000 crore for the full fiscal year, warns a report. The airlines are flying towards their steepest-ever net loss of over Rs 20,000 crore this fiscal, which will be 44 per cent more than Rs 13,853 crore they bled last fiscal, Crisil said in a report. This will push back the industry's recovery beyond fiscal 2023, the report based on three large listed airlines--Indigo, Spicejet, and Air India--which together command 75 per cent of the domestic traffic, warned.
Low-cost carrier SpiceJet Airlines, promoted by a group of investors led by the Kansagra family and Delhi-based Ajay Singh, is working on a plan to start international operations next year, making it the third private Indian carrier after Jet Airways and Kingfisher to fly overseas.
SpiceJet has reported profit in Q1, it is trying its best to improve efficiencies in FY16.
Those who book tickets at discounted fares but later decide to check-in luggage would have to pay a fee.
SpiceJet is having tough times due to a huge financial crunch.
Beleaguered no-frills carrier SpiceJet on Monday approached the government for financial aid.
Speaking to Business Standard, Jet Executive Director Saroj Datta said: "SpiceJet and JetLite are an absolute fit in so far as their business models are concerned."
Low cost airline SpiceJet, on Saturday said it has placed orders for 10 more Boeing 737-800 aircraft with Boeing, and the first one would join the existing fleet of five aircraft, by February 2006.
The airline not to be put on cash and carry mode
In aviation parlance, an 'interline arrangement' is a deal under which the same ticket covers different legs of the journey flown by different airlines.
CCI's ruling came on a complaint filed by Express Industry Council of India.
Crisis-hit SpiceJet may get the first round of its much-needed fund infusion in the next two days, while more may come in a month's time as part of an estimated $200 million investment plan, sources said on Thursday.
The fresh round of discounted fares is applicable for three days starting Tuesday on all SpiceJet flights from eight cities in South India.
Troubles for SpiceJet seem to have piled up and it remains financially strapped.
SpiceJet will have to refund fare to passengers due to a flight delay.
In a move that signals a fresh round of consolidation in the recession-hit aviation industry, budget carrier SpiceJet may pick 7.5 per cent stake in another low-cost airline IndiGo.
Sources privy to the development said Maran was being asked to take care of a part of the liabilities.
Falling jet fuel prices, stable rupee signal lower losses
Oil firms will supply fuel to SpiceJet on 'cash and carry basis'.
The airline was also asked to refund the money it charged from passengers for food and beverages as, according to the laid-down rules, it was supposed to have offered these items for free.
Crisis-hit SpiceJet hopedul of a turnaround.
It is not clear whether the fund would be looking at a possible buyout of the promoters' stake or fresh infusion of equity. Wilbur Ross does not have any investment in aviation till now. The fund will be looking at a bailout for the airline as SpiceJet is seeking to raise funds to stay afloat and also to fund the aircraft acquisition for its new Boeing fleet scheduled for deliveries over the next five months.
No-frill carrier SpiceJet on Monday announced compensation to passengers for delay or cancellation of flights due to factors within their control, through travel vouchers worth Rs 500 or Rs 1,000.
Auditors of Jet Airways, SpiceJet say the "appropriateness of the going concern basis" depends on their ability to meet obligations.
Within two weeks of many airlines deciding to roll back salary cuts encouraged by a steady increase in traffic flow, a second wave of coronavirus along with rules of compulsory RT-PCR test has hit forward bookings. The fears of last summer, when the pandemic had overturned all the wisdom of airline boardrooms, have returned to haunt the aviation industry. According to an official in the Ministry of Civil Aviation, flight occupancy is down to 60 per cent from 70 per cent in the first week of March. Airline lobby group IATA estimates that low cost airlines need to fly at 80 per cent occupancy to be profitable.
Chief executive officers of airlines have asked the government to bear 50 per cent of three months' salaries of employees.
Seaplanes are fixed-wing aircraft that can take off and land on both water and airfields.
Says, it is too pre-mature to comment on the possibilities of any fresh equity issuance.
Lower fuel costs and tight control on expenses propped up earnings before interest, tax, depreciation and amortisation (Ebitda) margins to one per cent.
Anticipating a weak demand in the traditionally lean January-March period, most domestic airlines on Tuesday reduced fares massively after no-frills carrier SpiceJet announced a steep 50 per cent discount on base fares and fuel surcharges across sectors.
While fares on the Delhi-Mumbai route have risen 45 per cent, Delhi-Bengaluru and Mumbai-Bengaluru tickets are priced 57 per cent and 42.5 per cent higher, respectively.
Vijay Mallya-owned private air-carrier, Kingfisher Airlines is in talks with a top former executive of the budget airline, SpiceJet to take him onboard and a final decision on the issue is expected shotly, sources said.
The share swap is expected to be in the ratio of 1: 3, where SpiceJet shareholders will get one share of the merged entity for every three SpiceJet shares owned by them.
At the height of its troubles and desperate to mop up cash to fly the next day, SpiceJet was offering ridiculously high deposit incentives to travel agents and online portals -- incentives it could ill afford.
Latter's market share rises to 36.1% in Dec; best on-time performance across metro airports
SpiceJet has cut costs to turnaround the carrier in a year's time.
It is imperative that the government first decides who should assume ownership of running Air India.
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