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Budget carrier SpiceJet on Friday said its board will consider a proposal for raising fresh funds on November 18. In recent times, the airline has been facing significant financial and operational headwinds. It has also curtailed flights. SpiceJet said its board would meet on November 18 to consider and approve the proposal for raising fresh capital. The fresh capital could be raised "by way of issuance of equity shares, preference shares, debt securities and/or other permissible instruments, through preferential issue, qualified institutions placement or any other mode," it said in a regulatory filing. Shares of the company rose nearly 5 per cent to Rs 8.67 apiece in late afternoon trade on the BSE. The airline's domestic market share dropped to 0.6 per cent in September from 1.2 per cent in August, according to the latest DGCA data.
The Federation of Indian Airlines (FIA) is seeking a review of the existing jet fuel pricing formula, and said domestic ATF should be priced on the actual cost of fuel plus a reasonable margin rather than international benchmark pricing. The unprecedented increase in fuel costs, compounded by geopolitical disruptions and rupee depreciation, is placing significant pressure on airline cash flows and viability, it said. In a letter to the Civil Aviation Ministry late last month, FIA also said that "if timely relief is not available, the airlines may be compelled to withdraw from several unsustainable routes." Air India, IndiGo and SpiceJet are the members of FIA. From around 30-40 per cent, airlines' operating costs have increased to around 55-60 per cent under the prevailing circumstances, out of which ATF remains the single largest variable cost, it said. The current conflict (West Asia) has pushed the Brent Crude from USD 72 / BBL to USD 118 / BBL, and the resultant ATF price (MOP
SpiceJet on Monday said DGCA's regulatory monitoring should not be construed as a fresh finding of safety deficiencies against the airline. In a clarification to the BSE, the budget carrier, which has been facing operational and financial headwinds, said it was aware of the Directorate General of Civil Aviation's (DGCA) regulatory monitoring. DGCA routinely undertakes safety audits, surveillance and spot checks of airlines as part of its regulatory oversight. SpiceJet has also undergone various such regulatory exercises in the past, and the regulatory monitoring should not be construed or represented as a new declaration or finding of safety concerns against the company, it said in a filing. The stock exchange had sought a clarification from SpiceJet on September 22 after Civil Aviation Minister K Rammohan Naidu said the airline was under DGCA scrutiny. "The current regulatory monitoring/review relating to the company's broader operational and financial position may not be equated
Aviation watchdog DGCA is carrying out the operational and financial scrutiny of budget carrier SpiceJet to ensure that passengers do not face any inconvenience, Civil Aviation Minister K Rammohan Naidu said on Tuesday. As SpiceJet grapples with multiple headwinds resulting in frequent flight delays and operational issues, Naidu also made it clear that the civil aviation ministry has limitations in intervening in the affairs of a private carrier. In July, the airline's domestic market share dropped to 1.6 per cent from 1.9 per cent in June, as per the latest official data. "The immediate activity in the ministry regarding SpiceJet is that we have operational and, to a certain extent, financial scrutiny also being done from the ministry through the DGCA because we don't want any lapse in safety," Naidu said. The minister was responding to a query regarding SpiceJet on the sidelines of signing pacts with states for the next phase of Udaan in the national capital. Naidu said the mini
CIAL on Saturday said there were no adverse weather conditions in Kochi to warrant disruptions to SpiceJet services and accused the airline of spreading misinformation. SpiceJet, in a social media post, said: "Due to bad weather in Kochi, all departures/arrivals and their consequential flights might be affected. Passengers are requested to check their flight status via https:picejet.com/#status." In a passenger advisory, Cochin International Airport Limited said it had noted ongoing operational issues with SpiceJet affecting its international services, including those from Kochi, causing considerable inconvenience and uncertainty for passengers. "SpiceJet has issued a social media communication spreading misinformation by attributing the disruption to bad weather at Kochi," CIAL said. It said there were no adverse weather conditions in Kochi warranting the disruption cited by the airline. "No other airline operating from Kochi has reported such disruptions on account of weather ..