With an estimated daily loss of Rs 2.75 crore, low-cost carrier SpiceJet
is in big trouble. The airline’s cumulative losses have piled up to Rs
2,189 crore and the Kalanithi Maran-owned carrier desperately needs a
big dose of capital.
The airline is also in a spot of bother with the Directorate General of Civil Aviation (DGCA) having initiated an engineering audit on it — the DGCA had reportedly discovered that the carrier wasn’t able to provide equipment for some flights and is checking to see if it has enough spares.
The airline has lost 50 basis points (bps) in market share over the past year but, in absolute terms, its share has increased from 17.8% in March to 19% in June, making it once again the number two airline in the home market. That’s despite a reduction in fleet and capacity deployed during the April-June period. With a load factor of 81.4% in June, SpiceJet also recorded the highest increase in loads for the period March-June 2014. However, much should not be read into the improved load factor since it is largely a result of heavy disounts even in the busy season, on top of a reduced fleet. By offering heavy discounts on tickets, the carrier is able to get cash, something it needs badly.
Read news in full 14/08/14 Financial Express
The airline is also in a spot of bother with the Directorate General of Civil Aviation (DGCA) having initiated an engineering audit on it — the DGCA had reportedly discovered that the carrier wasn’t able to provide equipment for some flights and is checking to see if it has enough spares.
The airline has lost 50 basis points (bps) in market share over the past year but, in absolute terms, its share has increased from 17.8% in March to 19% in June, making it once again the number two airline in the home market. That’s despite a reduction in fleet and capacity deployed during the April-June period. With a load factor of 81.4% in June, SpiceJet also recorded the highest increase in loads for the period March-June 2014. However, much should not be read into the improved load factor since it is largely a result of heavy disounts even in the busy season, on top of a reduced fleet. By offering heavy discounts on tickets, the carrier is able to get cash, something it needs badly.
Read news in full 14/08/14 Financial Express
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