SpiceJet reports Rs 462-crore loss in Sep quarter on higher costs

The numbers could havebeen worse, if the Rs 171-crore compensation from aircraft manufacturer Boeing wasn’t accounted for – a component that was contested by the airline’s auditor

SpiceJet on Wednesday reported a loss of Rs 462 crore for the September quarter, its first quarterly loss during the current

financial year. This was on the back of higher costs during a seasonally weak quarter.The numbers could havebeen worse, if the Rs 171-crore compensation from aircraft manufacturer Boeing wasn’t accounted for — a component that was contested by the airline’s auditor. SpiceJet has claimed compensation from Boeing for the grounding of the 737 Max. However, the process hasn’t been started by Boeing yet. The airline had claimed compensation of Rs 114 crore in the previous quarter, and is yet to receive the amount.

Boeing has announced a $4.9-billion compensation for the grounding. “What we are claiming is only partial compensation. In reality, the compensation amount would have been higher as I have suffered losses by being forced to fly old aircraft, paying airport charges, and crew salary for aircraft not being flown. The compensation amount is legitimate,” said SpiceJet Chief Financial Officer Kiran Koteshwar.

Despite improving yield,the numbers slipped into the red, hit by high maintenancecosts and lease rental. This was an outcome of the airline taking over old Jet Airways aircraft, in the absence of the 737 Max. “Due to the absence of the Max, there was huge asymmetry in operations, with us operating twin class 167-seater aircraft, while we prefer the single class 189-seater.

India won’t ground Boeing 737 MAX, sets new rules for flying plane

The pilot commanding the aircraft should have at least 1,000 hours of flying experience, according to the DGCA directions

Aviation regulator DGCA on Monday issued additional safety instructions to SpiceJet and Jet Airways for operating Boeing 737 MAX planes. The pilot commanding the aircraft should have at least 1,000 hours of flying experience, according to the DGCA directions. A day after a 737 MAX aircraft crashed in Ethiopia killing 157 people, the Directorate General of Civil Aviation (DGCA) said interim safety measures are being taken with inputs available at this stage.

“The DGCA will continue to closely monitor the situation and may impose/ take any other operational/ maintenance measures/ restrictions based on the information received from accident investigation agency/ FAA/ Boeing,” the regulator said in a statement. The watchdog has also asked the airlines to ensure various requirements are complied with by engineering and maintenance personnel with respect to Boieng 737 MAX planes.

The operators have to ensure that no B737– 8 MAX aircraft in their fleet is operated without compliance with DGCA’s latest directions with effect from 1200 hours on March 12, the statement said.

IndiGo and SpiceJet make web check-in paid service, flyers tweet protest

Low cost airlines IndiGo and SpiceJet have announced they will charge fees for their online check-in service, looking for ways to make up for higher costs but drawing protests from flyers.

Latest News : Low cost airlines IndiGo and SpiceJet have announced they will charge fees for their online check-in service, looking for ways to make up for higher costs but drawing protests from flyers.

Check-ins at airports will be free. IndiGo’s lowest seat fee is Rs 100 and SpiceJet’s Rs 99. Passengers earlier paid exra fees only for select seats, like along the aisle, window-facing or with additional legroom, if they checked in online.

Mumbai-based low cost carrier Go Air is still offering some seats for free. Full service airlines like Jet Airways, Vistara said they don’t charge for seat selection. IndiGo and SpiceJet’s decision comes at a time when airlines are struggling with rising costs but can’t afford to raise ticket fares due to competition.|Indigo-Spicejet Tweet Protest

Such charges will help to boost ancillary revenue of the airlines. Ancillary revenue consists of charges like baggage fees, seat selection fees, cancellation charges.”Based on our customer preference we have made some changes in pricing for advance selection of seats. This is a usual practice followed by airlines globally and across India,” IndiGo said in a statement.

Experts said that airlines were free to charge for the online check-in service as aviation regulator DGCA has allowed unbundling of services. “Airlines are not in violation of law. According to rules, they can charge of such services,” said Lalita Bhasin, partner at law firm Bhasin & Co.

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