The Directorate General of Civil Aviation (DGCA) on Monday asked SpiceJet to stop advance bookings of over a month, among other things. SpiceJet former director Ajay Singh says the aviation company must focus on profitable routes, get back to the low-cost model and work hard to bring costs down. He adds that the low-cost carrier holds a 20 percent market share and has a strong promoter. He is confident that the promoter will be able to adequately fund the deficiencies. As far as the DGCA goes, Singh believes it too is in a difficult situation. It is supposed to protect passengers as well as ensure that the airline remains strong. However, he adds that things could have been handled better. "If an airline is asked not to book beyond a month, it severely impairs the airline," he told CNBC-TV18. He adds that such a move will also adversely impact passengers’ confidence in the airline. Singh is confident that SpiceJet will eventually find a way out of all the problems. Aviation expert and South Asia chief executive of aviation consultancy Centre for Asia Pacific Aviation (Capa) Kapil Kaul is surprised and dissatisfied with DGCA's move against SpiceJet. He believes that the government has not done enough for the ailing sector. "The government has not done enough to get the sector back onto fundamentally strong ground and as a result the operating environment for airlines is dismal," he adds.
09/12/14 CNBC-TV18/moneycontrol.com
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09/12/14 CNBC-TV18/moneycontrol.com
