In a move that could be followed by major Indian airlines, no-frill carrier SpiceJet on Friday slashed air fares substantially by offering a limited-period sale of 10 lakh seats across its domestic network for an all-inclusive fare of Rs 2,013.
Global investment banking and securities firm Goldman Sachs has expressed interest in acquiring equity in Delhi-based SpiceJet even as top sources said talks for a merger with Kingfisher Airlines are on track.
Meanwhile, the company's shareholders last week approved proposals to raise Rs 145 crore through issue of debentures and warrants, on preferential basis, to its promoter Kalanithi Maran.
It has posted losses in four consecutive quarters as higher operating costs wiped out revenue gains.
A source said Mills was leaving the airline as he was not getting operational freedom to run the organisation.
IndiGo declined to comment on the matter
IndiGo's passenger load factor, at 67% in July, fell six percentage points from the same month last year.
Of the 243 listed flights, it claimed to have operated 75 across the country after 1600 hours on Wednesday.
Singh holds more than 36.15 crore shares.
The aviation regulator slapped fines amounting to Rs 2.75 crore on Indian airlines in 2023, marking a 39 per cent rise in financial penalties from Rs 1.97 crore in 2022. The Directorate General of Civil Aviation (DGCA) said it imposed fines on domestic carriers such as Air India, IndiGo, AirAsia India and SpiceJet for issues related to non-compliance in 2023. The regulator also carried out a record number of 5,745 surveillance activities in the year to ensure compliance by airlines, aerodrome operators, and aviation personnel among others.
Low-cost carrier SpiceJet on Friday said it has launched a 'Home Away Insurance' for all its customers in collaboration with insurance firm Tata AIG.
Troubled carrier SpiceJet has paid employees' salaries for November and cleared dues of fuel companies as well.
No-frills carrier SpiceJet is in active discussions with Singapore-based budget carrier Tigerair for a possible stake sale even as they are set to sign a code share agreement soon.
The prospective owners of Indian low-cost carrier SpiceJet Ltd plan to cut the airline's fleet, shrink its network and return to a "plain vanilla" business model to achieve profitability, two people close to the investors said.
The airline has launched a series of discount offers since January this year.
Shares of SpiceJet zoomed almost 20 per cent on Friday on expectations of revival of the distressed air carrier.
Latter's market share rises to 36.1% in Dec; best on-time performance across metro airports
Clearance of dues is a key step in airline's revival.
Budget carrier SpiceJet on Wednesday joined the low fare race in the domestic market putting on the block half a million seats with ticket prices starting at Rs 1,499 under a limited period promotional offer.
No-frills airline SpiceJet on Wednesday launched yet another round of limited-period low fare offers to fill its seats for travel between July and September when air travel generally slumps.
Oil firms will supply fuel to SpiceJet on 'cash and carry basis'.
India must address issues that are plaguing its aviation sector.
Things don't seem to be good at low fare carrier SpiceJet's office. In past few months, its top rung officers have resigned over differences in opinion with the management.
Kalanithi Maran's stake in the no-frills airline has increased by nearly 6 per cent to 22.05 per cent due to allotment of equity shares following conversion of convertible debentures.
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The airline, which posted an annual loss of Rs 191 crore (Rs 1.91 billion) for the past financial year, has been looking to raise funds for months.
The offer is applicable to airline's all domestic destinations, including Mumbai, Delhi, Kolkata and Chennai, a company official said.
In an email, a SpiceJet spokesperson said: "A few foreign airlines/investors have evinced interest in SpiceJet. It will be very premature to comment on the possibilities of any fresh equity issuance to such interested parties."
India is not an easy environment to operate in and grow because of the high cost of operations, says Neil Mills.
Even as it is expected to post a net loss, the Delhi-based no-frills airline SpiceJet is reducing its financial year to ten months ending March 31, 2007, for operational reasons.
Sun Group chief Kalanithi Maran and his wife Kavery Maran have resigned from one of the promoter entities of SpiceJet, triggering speculations about a possible sale of Maran family's majority stake in the air carrier.
As full-service carriers hiked fares and surcharges due to skyrocketing jet fuel prices, the no-frill ones have launched special offers with SpiceJet on Thursday announcing the sale of three lakh tickets for Rs 3 each plus taxes and surcharge from Friday.
Low-cost carrier SpiceJet's share price went up 9.5 per cent at the Bombay Stock Exchange today in an otherwise flat market fuelled by speculation that the airline was in merger talks with another Delhi-based low-cost carrier, IndiGo.
Sources aware of the development said as part of the project, the airline had signed an agreement with Reliance Industries Ltd, which would extend quality control services at its coastal terminals for ATF imported by the airline.
No frills carrier SpiceJet on Monday cut down base fare for its evening flights to Kathmandu to Re 1 for two days starting on Monday.
Jet Airways faces similar setback.
SpiceJet has held "preliminary discussions" with a Gulf airline for potential investment in the Indian budget carrier, a news report has said.
Move aims to comply with Sebi's norm
With the new fleet of Bombardier Q400 aircraft, the Kalanithi Maran-promoted airline aims at reaching more hinterland of northern Indian and connect more Tier II and Tier III cities on its network.
HC asks DGCA not to de-register SpiceJet planes till April 6.
