Even as the Kalanithi Maran-owned airline SpiceJet hopes for fresh funds from investors to turn around the company, frequent flight cancellations and delays are making consumers wary. In an intensely competitive aviation market like India where multiple carriers are vying for a share of passenger traffic, often through predatory pricing, SpiceJet may find it difficult to regain its feet if the brand comes to be associated with uncertainty in the minds of travellers.
A person who works closely with SpiceJet said it hadn’t paid its vendors, contractors and employees for one to three months. He declined to be identified. “We haven’t been paid for three months now,” he said.
According to news reports, the number of flights on SpiceJet’s network that are getting cancelled at present stand at around 70 per day, up from around 40 in mid-November. SpiceJet had said in November that it had cut the size of its fleet by 10 planes to 38 over the last few months. Since January, SpiceJet has rolled out multiple discount schemes to attract passengers and the strategy has worked.
08/12/14 Financial Express
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A person who works closely with SpiceJet said it hadn’t paid its vendors, contractors and employees for one to three months. He declined to be identified. “We haven’t been paid for three months now,” he said.
According to news reports, the number of flights on SpiceJet’s network that are getting cancelled at present stand at around 70 per day, up from around 40 in mid-November. SpiceJet had said in November that it had cut the size of its fleet by 10 planes to 38 over the last few months. Since January, SpiceJet has rolled out multiple discount schemes to attract passengers and the strategy has worked.
08/12/14 Financial Express
