New Delhi/ Mumbai: Overturning the directions issued by regulator the Directorate General of Civil Aviation (DGCA), the civil aviation ministry on Tuesday lifted the 30-day booking restriction that the former had imposed on the ailing no-frills carrier SpiceJet. Civil aviation minister Ashok Gajapathi Raju and minister of state Mahesh Sharma held a meeting with petroleum minister Dharmendra Pradhan and officials from the finance ministry, following large-scale disruption of SpiceJet flights.
Experts are, however, not sure if the easing of restrictions will help SpiceJet now. “Removing restrictions on forward bookings is not going to help now as customer and travel trade confidence is very low. The earlier decision to restrict was a bad one and has hurt the airline significantly,” said Kapil Kaul, chief executive officer, Centre for Asia Pacific Aviation. The civil aviation ministry has given the airline two weeks (till December 31, 2014) to clear Airports Authority of India (AAI)’s Rs 200 crore dues or give an enhanced bank guarantee. The airline could be put on a ‘cash and carry’ mode if it fails to settle dues. The aviation ministry has asked the petroleum ministry to consider SpiceJet's pleas for easier credit terms after the airline was forced to cancel or reschedule its flights. SpiceJet can now accept bookings beyond 30 days, but till the end of March 2015.
17/12/14 Business Standard
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Experts are, however, not sure if the easing of restrictions will help SpiceJet now. “Removing restrictions on forward bookings is not going to help now as customer and travel trade confidence is very low. The earlier decision to restrict was a bad one and has hurt the airline significantly,” said Kapil Kaul, chief executive officer, Centre for Asia Pacific Aviation. The civil aviation ministry has given the airline two weeks (till December 31, 2014) to clear Airports Authority of India (AAI)’s Rs 200 crore dues or give an enhanced bank guarantee. The airline could be put on a ‘cash and carry’ mode if it fails to settle dues. The aviation ministry has asked the petroleum ministry to consider SpiceJet's pleas for easier credit terms after the airline was forced to cancel or reschedule its flights. SpiceJet can now accept bookings beyond 30 days, but till the end of March 2015.
17/12/14 Business Standard
