New Delhi: Plans by leading low-cost carrier SpiceJet to launch regional operations by mid-July may be delayed following the political debacle of DMK in the Tamil Nadu elections and party MP Kanimozhi 's arrest in the 2G scam case.
Kalanidhi Maran, who owns the Sun Television network and also bought budget airline SpiceJet, is a nephew of DMK chief Karunanidhi. Following DMK's election loss on May 13, the airline's stock has nosedived on largescale dumping by investors. On performance parameters too, SpiceJet has suffered - its load factor fell to 75.4 per cent during the January-March quarter of FY'11 from 81 per cent in the previous year's corresponding period.
"They (SpiceJet) have been slow and almost overshadowed by their rival IndiGo. They still have ownership issues involved. I am sure they may have problems in investments as the group has lost political clout now after DMK lost in Tamil Nadu," said an aviation expert who is also a chief executive officer (CEO) of a reputed firm that provides technology expertise to aviation as well as the travel industry.
23/05/11 Sanjay Singh/Business Today
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