Thursday, December 18, 2014

SpiceJet in more trouble

New Delhi: After state-owned oil firms refused to give fuel on extended credit for SpiceJet flights, the airline’s flights remained grounded right from Wednesday morning but resumed at about 4 pm, even as the airline’s former promoter Ajay Singh held discussions with civil aviation ministry officials to find a way to salvage the airline.
The fresh cancellations caused inconvenienced to thousands of passengers at Delhi airport after which the passengers staged a demonstration and shouted slogans against outside the Terminal 1- D but were later pacified by security staff. Sources said passengers of cancelled flig-hts are having to buy “very high spot fares” to reach their destinations since cancellation of flig-hts has put tremendous pressure on the existing seat-carrying capacity (of other airlines).
In a highly significant move, the civil aviation ministry is expected to soon discuss a proposal within the ministry for regulation to decide both a minimum and maximum fare depending on the price per km. The proposed minimum fare is to ensure that airlines meet operating costs while the maximum is to ensure that passengers are not over-charged on spot fares.
The ministry is examining whether a maximum fare of cap of Rs 15,000 should be decided upon.
18/12/14  Sridhar Kumaraswami/Asian Age
To Read the News in full at Source, Click the Headline