SpiceJet, a low-cost carrier, recorded a 24 per cent decline in net profit, at Rs 181.1 crore, in the quarter-ended December, from Rs 239.9 crore in the year-ago period. The airline attributed the performance due to subdued demand due to demonetisation.
IndiaÂ´s aviation sector is soaring high, with the month-on-month passenger growth for the month of July hitting a record 25 per cent. The total number of passengers carried by domestic airlines during the January to July 2016 period was 560.87 lakh versus 455.95 lakh during the corresponding period of previous year, thereby registering a growth of 23.01 per cent, says the latest data released by DGCA.
With the Civil Aviation Ministry set to finalise the aviation policy soon, which will also decide the fate of the norms for international operations by domestic airlines, Tata Sons said the industry should avail opportunities rather than discuss rules. 'I would say let us all move on..
For its fleet expansion, domestic low-cost carrier SpiceJet has selected BoeingÂ’s 737 Max, fuel-efficient and narrow body aircraft. The latest offering from Boeing promises 13 per cent fuel savings over the current generation of planes and would enter into service from 2017.
The Union Civil Aviation Ministry has allowed SpiceJet, IndiGo, Jet Airways and other Indian carriers to increase their number of flights to to the Middle East and South East Asia destinations. SpiceJet has huge international expansion plans.
By phasing out expat pilots, SpiceJet is planning to save Rs 90 crore per annum. Foreign pilots employed by Indian airlines are paid in dollors. Not jut, SpiceJet, the falling rupee has made airlines in India to act in an area where they have dragged their feet for years - phasing out expat pilots. Now the low cost carrier SpiceJet has brought down its number of expat pilots, all of whom are commanders, from over 100 a year ago to just 25 now.
Kalanithi Maran promoted low-cost carrier SpiceJet is not 'too worried' about the impending entry of AirAsia, its CEO Neil Mills said, in what is the first reaction since the Malaysian budget airline announced in February its JV with Tata Sons.
India's low-cost carriers such as SpiceJet and IndiGo are certain to face challenges with the entry of AirAsia and other foreign partners. AirAsia's foray comes at a time the airline industry is in turmoil with passenger traffic sliding. The number of passengers in fact shrunk 7.3 per cent in November on a year-on-year.