SpiceJet posted a net loss of Rs 789 crore in April-June quarter of FY 2023 due to high fuel prices and a weaker rupee
').insertAfter(".article-content__img");$(".article-content__img div").find('div').remove();
Topics
SpiceJet | DGCA | Civil Aviation
SpiceJet posted a net loss of Rs 789 crore in April-June quarter of FY 2023 due to high fuel prices and a weaker rupee
').insertAfter(".article-content__img");$(".article-content__img div").find('div').remove();
SpiceJet will continue flying 50 per cent of its flights for another month, said the aviation regulator on Wednesday as a "matter of abundant caution".
The Directorate General of Civil Aviation (DGCA) capped SpiceJet’s flights on July 27 for eight weeks after safety violations. Its new order will not affect schedules as the airline is anyway operating less than 50 per cent of flights for the summer schedule.
“Whereas the review has indicated that there is an appreciable reduction in the number of safety incidents. However as a matter of abundant caution the competent authority has decided that the restriction as imposed in the order dated 27-07-2022 shall continue to be in force till the end of summer schedule -29-10-2022,” said Maneesh Kumar, DGCA’s joint director, in an order on Wednesday.
"SpiceJet will have to demonstrate that it has sufficient technical support and financial resources to operate more than 50 per cent of its approved flights and will continue to remain under enhanced surveillance,” Kumar said.
SpiceJet did not immediately react to the order. In July, the airline had said it continues to work under DGCA’s guidance.
DGCA, in the first week of July, issued SpiceJet a notice alleging failure to establish safe, efficient and reliable services following a spate of eight incidents within a month. After a financial audit last year, DGCA found that SpiceJet had an inadequate pool of spare parts.
In an interim order on July 27, the DGCA imposed the capacity restriction. The regulator’s new order comes a day after SpiceJet put 80 of its pilots on leave without pay amid financial stress and delay in funding
SpiceJet inducted around 30 Boeing 737NG aircraft flown earlier by Jet Airways. Fuel-efficient Boeing 737 Max aircraft were to replace the planes but their delivery was stalled due to a global grounding and later due to Covid-19.
An airline source said SpiceJet sent the pilots on leave in view of financial stress. The airline has pilots in excess of its current operating requirements, said the source.
SpiceJet posted a net loss of Rs 789 crore in April-June quarter of FY 2023 due to high fuel prices and a weaker rupee. It aims to raise Rs 2,000 crore in fresh funds and said to be in talks with potential investors.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
First Published: Wed, September 21 2022. 19:10 IST
JPMorgan has deployed an AI-based research analyst chatbot to enhance productivity among its workforce, with approximate... Read more
Private equity has emerged as a significant force in the global financial landscape, driving substantial growth and inve... Read more
The world’s leading financial stability watchdog has issued a warning about the unresolved vulnerabilities within the ... Read more
In a week marked by strong financial performance, JPMorgan Chase & Co. reported a 25% rise in profits, and US small-... Read more
The financial industry is a competitive landscape where big banks and regional banks vie for market share. Each type of ... Read more
The landscape of philanthropic advisory services provided by private banks has undergone a significant transformation. T... Read more