SpiceJet cancels over 1,800 flights in India domestic sector

Cash-deficient SpiceJet has cancelled over 1800 cheap flight in India this month. The budget airline has been suffering cash deficiency and had to take this step.

The airline, which is part of Kalanithi Maran-led Sun Group, has cancelled a total of 1,861 flights a few to Kathmandu in Nepal and all others linking household places, until Dec 31, SpiceJet said in an upgrade on its website.

These involved 81 flights planned for nowadays it. The large-scale journey cancellations came at a time when the aircraft regulator DGCA was considering providing a show- cause notice to the air travel for disobeying its directives regarding enhance reservations.

                              

DGCA has requested the airline to quit taking reservations by the next day of more than one 30 days in advance.

Besides, Airports Authority of India ( AAI) is said to be considering putting SpiceJet on cash-and-carry method soon if it does not provide a bank assurance against its expenses to Airport authorities, which stand at around Rs 200 crore.

                                   

While the regulating actions might not instantly affect the airline's permit, it could power "a sequence of actions".

Concerned over the difficult condition of SpiceJet and large-scale journey cancellations, DGCA had on Saturday also removed 186 of its spots and requested it to clear wage expenses of all its workers within the coming 10 times.

                               

Shares of SpiceJet, which tumbled 13 % in early business nowadays amongst a quantity of adverse news such as finance famine and large-scale journey cancellations, shut with a loss of 4.39 % at Rs 15.25 each.

Union Civil aviation Ministre Ashok Gajapathi Raju also last week brought up serious issue over the financial wellness of the domestic airline.