In a release sent in the middle of the day, embattled low-cost airline SpiceJet claimed that they operated all 230 flights that were scheduled for the day. This has happened a day after they were forced to cancel several flights due to the oil marketing companies (OMCs) not giving the airline fuel on credit. SpiceJet flights were restored only after the airline made a payment of Rs3 crore to the OMCs.
After the Civil Aviation Ministry gave permission, the airline was able to start selling tickets till the end of their Winter schedule which runs till March 28, 2015. But the Ministry’s note to banks and OMCs requesting them to “help” the airline by offering short-term working capital loans and reasonable credit terms has apparently not been heeded.
Sources close to the SpiceJet management believe that for the time being at least, the airline will be able to operate its truncated schedule for the next few days without any further issues pointing out that such operations are vital to win back customers’ trust. SpiceJet fares on busy sectors such as Delhi-Mumbai, Delhi-Bangalore and Mumbai-Bangalore are between 30-50 per cent cheaper than rival airlines. The cheapest one-way Delhi-Mumbai ticket departing on Friday was Rs5,402 on SpiceJet compared to Rs8,200 on rival airlines.
In other developments, Ajay Singh, one of the former promoters of SpiceJet before the airline was acquired by the Kalanithi Maran controlled Sun Group, has apparently said that he is open to investing money in the airline again. SpiceJet desperately needs a fresh infusion of capital thanks to its negative net worth of Rs1,400 crore and industry analysts believe that a total investment of Rs2,000 crore plus will be needed to help SpiceJet get back on its feet.