New Delhi: Delayed salaries, aircraft on ground and some being repossessed by lessors, increasing daily flight cancellations - things are not looking good for SpiceJet. The airline has been talking to potential investors for funds' infusion but obviously no deal has been worked out yet. Till an investor arrives, however, SpiceJet's fleet shrinkage and daily cancellations may only increase.
Sources close to developments at SpiceJet said today that they expected daily flight cancellations to reduce in December compared to November as some aircraft were to return to the airline. But this has not happened and in fact, some more aircraft have been grounded. Result? Against about 40 daily flight cancellations that the airline had admitted to in mid-November, the number has risen to almost 70 a day. At its peak, the airline was operating 345 daily flights this summer but now that number is down to 275, according to sources. These sources also pointed out that the cancellations are likely to stay through December as the airline may not increase operational fleet in a hurry.
Some of the aircraft have been repossessed by lessors because SpiceJet was unable to pay lease rentals, some others were re-deliveries. More aircraft could be in line for re-possession by lessors unless the airline is able to pay lease rentals.
02/12/14 Sindhu Bhattacharya/FirstBiz
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Sources close to developments at SpiceJet said today that they expected daily flight cancellations to reduce in December compared to November as some aircraft were to return to the airline. But this has not happened and in fact, some more aircraft have been grounded. Result? Against about 40 daily flight cancellations that the airline had admitted to in mid-November, the number has risen to almost 70 a day. At its peak, the airline was operating 345 daily flights this summer but now that number is down to 275, according to sources. These sources also pointed out that the cancellations are likely to stay through December as the airline may not increase operational fleet in a hurry.
Some of the aircraft have been repossessed by lessors because SpiceJet was unable to pay lease rentals, some others were re-deliveries. More aircraft could be in line for re-possession by lessors unless the airline is able to pay lease rentals.
02/12/14 Sindhu Bhattacharya/FirstBiz
