Bengaluru: Recent troubles of low-cost carrier SpiceJet are giving ‘heart attacks’ to the Civil Aviation Ministry.
Speaking at an event in the Capital, Union Minister for Civil Aviation Ashok Gajapathy Raju said, “We are running through a lot of turbulent weather...not only the public sector, private sector is also crashing. (With) Kingfisher crashing and, right now, SpiceJet seems to be giving us heart attacks as far as airlines are concerned.”
Mounting losses, high taxes and operations have led to most Indian carriers in recent times running through a “lot of turbulent weather”. The ministry is now considering easing of regulations in the aviation sector to help it grow. All Indian airline companies, with the exception of one, have reported mounting losses in recent times. Aviation analyst firm CAPA (Centre for Aviation) has estimated that the cumulative losses for the sector would be in the range of $1.4 billion in 2014-15.
Kalanithi Maran-promoted SpiceJet has been in the news over delays in salaries to its pilots. Though the Chennai-based carried has pruned its net loss from `559 crore recorded in the second quarter of 2013-14 to `310 crore in the same period this year, the current financial state of the company has raised concerns whether the company can stay afloat in these trying times.
05/12/14 New Indian Express
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Speaking at an event in the Capital, Union Minister for Civil Aviation Ashok Gajapathy Raju said, “We are running through a lot of turbulent weather...not only the public sector, private sector is also crashing. (With) Kingfisher crashing and, right now, SpiceJet seems to be giving us heart attacks as far as airlines are concerned.”
Mounting losses, high taxes and operations have led to most Indian carriers in recent times running through a “lot of turbulent weather”. The ministry is now considering easing of regulations in the aviation sector to help it grow. All Indian airline companies, with the exception of one, have reported mounting losses in recent times. Aviation analyst firm CAPA (Centre for Aviation) has estimated that the cumulative losses for the sector would be in the range of $1.4 billion in 2014-15.
Kalanithi Maran-promoted SpiceJet has been in the news over delays in salaries to its pilots. Though the Chennai-based carried has pruned its net loss from `559 crore recorded in the second quarter of 2013-14 to `310 crore in the same period this year, the current financial state of the company has raised concerns whether the company can stay afloat in these trying times.
05/12/14 New Indian Express
