Flights to Ahmedabad Operated by SpiceJet Soon to be Modified

SpiceJet – owned by the Sun Group – is the second largest carrier of India. It is planning to expand business and implement some drastic changes in the coming months. As per several reports, the carrier is looking forward to raise funds for revamping its overall services. An increased number of flights to Ahmedabad, Delhi, Chandigarh and many other cities may be included in this evolution process. As per industry watchers, this low-cost carrier (LCC) has finalised an investor after evaluating pros and cons of various offers. The Centre for Asia Pacific Aviation (CAPA) – an eminent global aviation consultancy – after analysis estimated that SpiceJet may need INR 1550 crores for continuous capital flow and this deal will infuse up to INR 1500 crores,

News regarding meetings and talks between SpiceJet management and many investors were headlines in the past few months. Officials of the airline also authenticated this information and said that the company needs to be recapitalised. They need to reduce the cost of operation and add new models in the fleet to survive in this competitive market. If this deal is finalised, the restructuring process will soon be initiated; however, there some private equity investors and global airline operators also, who showed their interest. The spokesperson of the carrier said that it is tough to give out specifics as the company is still exploring options.

In addition to this, they talked about the financial performance of the company; it managed to bring down the loss by around 42 per cent in the second quarter. With improved services and capacity addition, the airline gained significant share in the market in the third quarter. As per industry watchers, the discounts deals played an important role in attracting fliers, which helped it in gaining market share and replacing Air India in the ranking list. The airline managed to reap revenues even after reducing fares of Delhi, Jaipur, Mumbai Ahmedabad flights and many other domestic destinations. However, due to change in the weather, the fleet will be reduced to around 35 as many models are not suitable for flying in cold and fog, which may hamper profits in the last quarter. However, reduction in the Aviation Turbine Fuel (ATF) might help them in maintaining the balance.


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