Spicejet Ltd has cut the size of its fleet to 22-24 Boeing planes from 35 in September and will maintain that for "the near and medium term", its chief operating officer said, as the loss-making budget carrier looks to cut costs.
The airline, which has lost money for five consecutive quarters, had intended to reduce the size of its fleet for a short time and then start expanding again early next year, but has decided that it must stay smaller for longer, Sanjiv Kapoor said.
"The decision to shrink is part of our restructuring," Kapoor said.
Shares of SpiceJet tumbled nearly 13 per cent on Friday amid reports that the Airports Authority of India (AAI) has decided to withdraw credit facility to the carrier.
SpiceJet's stock plunged 12.7 per cent to Rs 16.15 on the BSE.
As per media reports, the AAI move has been spurred by the airline's mounting dues.
Civil Aviation Minister Ashok Gajapathy Raju said on Thursday that the airline sector is running through a "lot of turbulent weather" with troubled SpiceJet seeming to give "us heart attacks".
05/12/14 Business World
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The airline, which has lost money for five consecutive quarters, had intended to reduce the size of its fleet for a short time and then start expanding again early next year, but has decided that it must stay smaller for longer, Sanjiv Kapoor said.
"The decision to shrink is part of our restructuring," Kapoor said.
Shares of SpiceJet tumbled nearly 13 per cent on Friday amid reports that the Airports Authority of India (AAI) has decided to withdraw credit facility to the carrier.
SpiceJet's stock plunged 12.7 per cent to Rs 16.15 on the BSE.
As per media reports, the AAI move has been spurred by the airline's mounting dues.
Civil Aviation Minister Ashok Gajapathy Raju said on Thursday that the airline sector is running through a "lot of turbulent weather" with troubled SpiceJet seeming to give "us heart attacks".
05/12/14 Business World
