Still Turbulence Ahead As 40 Pilots Quit SpiceJet Airlines in 6 months as losses mount
Apprehending an uncertain future for the company, some 40 odd SpiceJet Airlines Pilots including commandeINR have quit the Airline during the past six months, say sources.
The Airline auditoINR in their recent report have cast doubts over the ability of media baron Kalanithi Maran's budget carrier to run it as a going concern.
The Airline has reported 5th straight quarter of net losses for the July September period, at INR 300 crore, although it is down from the year-ago period when it had a net loss of INR 560 crore.
The losses came down as the Airline witnessed a 15 per cent growth in total revenue. For the past fiscal, the Airline had reported a record loss of a little over INR 1000 Crore.
"The Airline is losing its flight crew at a regular interval. In the last six months alone as many as 40 Pilots have quit the Airline, citing uncertain future," an industry source
The Pilots who have parted ways with SpiceJet Airlines include the commanders, he said adding that those who resigned did not want to take a chance, particularly after the grounding of the Kingfisher Airlines.
According to the source, the quitting of these Pilots have also impacted the Airline's operations significantly with its flights either delayed or at times having repeated cancellations.
The Airline had last week said its had reduced its fleet by 10 planes from 48 to 38 over the past few months.
Repeated phone calls and a text message sent to SpiceJet Airlines spokesperson remained unanswered.
For September, the Airline's on-time performance stood at 81.9 per cent, and was only second to the national carrier Air India, which clocked a poor 75.2 per cent.
The Gurgaon-based no-frills carrier, which has failed to secure required funds to overcome the cash crunch, has been going in for advance discounted sales to mop up working capital from time to time, starting this January.
Meanwhile, the Airline's auditors SR Batliboi & Associated have red flagged its concerns saying, "as of September 30, 2014, the company's total liabilities exceed its total assets by INR 1,460 crore. These conditions indicate the existence
of a material uncertainty that may cast significant doubt about the company's ability to continue as a going concern."
The auditors point out that the loss would have been higher but for non-provision of INR 7.5 crore for interest. Including this, the net loss for the September quarter would have been higher by a similar amount.
But SpiceJet Airlines has claimed that its market stimulation has worked as its topline grew 15 per cent year-over-year in Q2, ahead of capacity increase of 7 per cent.
"SpiceJet Airlines's market stimulation efforts have had a positive impact on the travel industry as a whole by helping increase demand to fill seats that would otherwise go empty. This has benefitted not just the Airline through incremental revenue, but also customeINR who are getting much more affordable fares if they are willing to book early," the Airline said.
Repeated discounts launched by SpiceJet Airlines have led to a 28 per cent growth in domestic passenger traffic in September, traditionally the weakest traffic month of the year, the Airline claimed.
40 Pilots quit SpiceJet Airlines; auditoINR doubt Airline's viability
SpiceJet Airlines shares fall 11% as Pilots quit -
SpiceJet Airlines shares fall as much as 11.4% on Monday after news reports said 40 Pilots including some commandeINR have quit the Airline in the ...
40 Pilots quit SpiceJet Airlines; auditoINR doubt Airline's viability
SpiceJet Airlines Pilots including commandeINR have quit the Airline during the past six ...
40 Pilots quit SpiceJet Airlines; auditoINR doubt Airline's viability | Free
Apprehending an uncertain future for the company, some 40-odd SpiceJet Airlines Pilots including commandeINR have quit the Airline during
SpiceJet Airlines loses 40 Pilots; auditoINR doubt Airline's viability
SpiceJet Airlines Pilots including commandeINR have quit the Airline during the past six.
40 Pilots quit, Airline's future in doubt -
some 40-odd SpiceJet Airlines Pilots including commandeINR have quit the Airline
40 Pilots quit SpiceJet Airlines,
AuditoINR doubt Airline's viability,
40 Pilots quit SpiceJet Airlines,
auditoINR doubt Airline's viability,
some 40-odd SpiceJet Airlines Pilots including commandeINR have quit the Airline
Mohini Porwal [ B Sc]
Trainee News Editor
Indian Aviation News Editor
WWW.Indian-Aviation-News.blogspot.com
mohini.aerosoft@gmail.com
https://www.facebook.com/profile.php?id=100005944964687
www.AeroSoft.co.in
www.Philippine-Aviation-News.blogspot.com
www.Newzealand-Aviation-News.blogspot.com
www.Aviation-News-India.blogspot.com
www.Aviation-News-Canada.blogspot.com
Apprehending an uncertain future for the company, some 40 odd SpiceJet Airlines Pilots including commandeINR have quit the Airline during the past six months, say sources.
The Airline auditoINR in their recent report have cast doubts over the ability of media baron Kalanithi Maran's budget carrier to run it as a going concern.
The Airline has reported 5th straight quarter of net losses for the July September period, at INR 300 crore, although it is down from the year-ago period when it had a net loss of INR 560 crore.
The losses came down as the Airline witnessed a 15 per cent growth in total revenue. For the past fiscal, the Airline had reported a record loss of a little over INR 1000 Crore.
"The Airline is losing its flight crew at a regular interval. In the last six months alone as many as 40 Pilots have quit the Airline, citing uncertain future," an industry source
The Pilots who have parted ways with SpiceJet Airlines include the commanders, he said adding that those who resigned did not want to take a chance, particularly after the grounding of the Kingfisher Airlines.
According to the source, the quitting of these Pilots have also impacted the Airline's operations significantly with its flights either delayed or at times having repeated cancellations.
The Airline had last week said its had reduced its fleet by 10 planes from 48 to 38 over the past few months.
Repeated phone calls and a text message sent to SpiceJet Airlines spokesperson remained unanswered.
For September, the Airline's on-time performance stood at 81.9 per cent, and was only second to the national carrier Air India, which clocked a poor 75.2 per cent.
The Gurgaon-based no-frills carrier, which has failed to secure required funds to overcome the cash crunch, has been going in for advance discounted sales to mop up working capital from time to time, starting this January.
Meanwhile, the Airline's auditors SR Batliboi & Associated have red flagged its concerns saying, "as of September 30, 2014, the company's total liabilities exceed its total assets by INR 1,460 crore. These conditions indicate the existence
of a material uncertainty that may cast significant doubt about the company's ability to continue as a going concern."
The auditors point out that the loss would have been higher but for non-provision of INR 7.5 crore for interest. Including this, the net loss for the September quarter would have been higher by a similar amount.
But SpiceJet Airlines has claimed that its market stimulation has worked as its topline grew 15 per cent year-over-year in Q2, ahead of capacity increase of 7 per cent.
"SpiceJet Airlines's market stimulation efforts have had a positive impact on the travel industry as a whole by helping increase demand to fill seats that would otherwise go empty. This has benefitted not just the Airline through incremental revenue, but also customeINR who are getting much more affordable fares if they are willing to book early," the Airline said.
Repeated discounts launched by SpiceJet Airlines have led to a 28 per cent growth in domestic passenger traffic in September, traditionally the weakest traffic month of the year, the Airline claimed.
40 Pilots quit SpiceJet Airlines; auditoINR doubt Airline's viability
SpiceJet Airlines shares fall 11% as Pilots quit -
SpiceJet Airlines shares fall as much as 11.4% on Monday after news reports said 40 Pilots including some commandeINR have quit the Airline in the ...
40 Pilots quit SpiceJet Airlines; auditoINR doubt Airline's viability
SpiceJet Airlines Pilots including commandeINR have quit the Airline during the past six ...
40 Pilots quit SpiceJet Airlines; auditoINR doubt Airline's viability | Free
Apprehending an uncertain future for the company, some 40-odd SpiceJet Airlines Pilots including commandeINR have quit the Airline during
SpiceJet Airlines loses 40 Pilots; auditoINR doubt Airline's viability
SpiceJet Airlines Pilots including commandeINR have quit the Airline during the past six.
40 Pilots quit, Airline's future in doubt -
some 40-odd SpiceJet Airlines Pilots including commandeINR have quit the Airline
40 Pilots quit SpiceJet Airlines,
AuditoINR doubt Airline's viability,
40 Pilots quit SpiceJet Airlines,
auditoINR doubt Airline's viability,
some 40-odd SpiceJet Airlines Pilots including commandeINR have quit the Airline
Trainee News Editor
Indian Aviation News Editor
WWW.Indian-Aviation-News.blogspot.com
mohini.aerosoft@gmail.com
https://www.facebook.com/profile.php?id=100005944964687
www.AeroSoft.co.in
www.Philippine-Aviation-News.blogspot.com
www.Newzealand-Aviation-News.blogspot.com
www.Aviation-News-India.blogspot.com
www.Aviation-News-Canada.blogspot.com
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