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Spicejet News -- Part 4
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abhijith16
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PostPosted: Fri Jun 13, 2014 2:15 am    Post subject: Reply with quote

New flights effective from 15JUL

MAA-IXM increases to twice daily 737, up from 12w 737

BLR-IXE increases to once daily Q400 (extending onto HYD), and one daily 737.

BLR-HYD increases to 29 weekly (3x Daily Q400, 8x Weekly 737), up from 4x Daily.

DEL-LKO increases to 13 weekly, up from 7 weekly.
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PostPosted: Wed Jun 18, 2014 2:49 pm    Post subject: Reply with quote

SpiceJet is once again doing the (temporary) summer-lease to Travel Service. VT-SPQ is the first one on her way to Prague.
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ameya
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PostPosted: Wed Jun 18, 2014 5:19 pm    Post subject: Reply with quote

The skeletal schedule will be further cut

Not a good news
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PostPosted: Wed Jun 18, 2014 8:04 pm    Post subject: Reply with quote

SpiceJet is the World’s fourth cheapest airline, according to this :

World’s cheapest airline revealed

http://www.news.com.au/travel/travel-advice/worlds-cheapest-airline-revealed/story-fn6yjmoc-1226958776174
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HAWK21M
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PostPosted: Wed Jun 25, 2014 4:27 pm    Post subject: Reply with quote

Is spice getting investments or will they follow the IT path.
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PostPosted: Thu Jun 26, 2014 4:14 pm    Post subject: Reply with quote

http://www.livemint.com/Companies/7Wfdlp132exsRXCdFcN4vK/SpiceJet-offers-bundled-fare-with-meals-priority-checkin.html

SpiceJet offers bundled fare with meals, priority check-in

Jun 26 2014

SpiceJet on Thursday announced the launch of a new product called SpiceFlex that offers multiple add-on services bundled into one for a 50% lower price.

SpiceFlex bundles services such as a complimentary meal, priority check-in, a choice to pre-assigned preferred seats and a waiver on change fees, the airline said in a statement.

“Guests choosing SpiceFlex would be able to save up to 50% on the regular price of these add-on services if they were to buy them as individual add-ons,” it said.

Starting Thursday, SpiceJet is introducing a three-day limited period special offer where a guest can upgrade to SpiceFlex at a further discounted price of Rs.749 for the bundled services.

This offer is applicable for bookings made between 26 June and 29 June for travel between 26 June and 30 September 2014.

Some low-fare airlines are shedding their no-frills image to attract more business fliers, a segment they see sustaining their operations over the long haul.
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ameya
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PostPosted: Thu Jun 26, 2014 8:44 pm    Post subject: Reply with quote

They also have a 300 rs charge for tagging your bag as priority and assuring that it comes out first.

Wonder how big the fight would be if the bags dont come out first
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PostPosted: Mon Jul 07, 2014 9:19 am    Post subject: Reply with quote

http://timesofindia.indiatimes.com/business/india-business/SpiceJet-seeks-nod-for-non-refundable-fares/articleshow/37930832.cms

SpiceJet seeks nod for non-refundable fares

Jul 7, 2014


SpiceJet has sought the aviation ministry's nod to bring this global practice to India by offering "restricted non-changeable, non-refundable" fares. These would be at least half of spot or last-minute fares and these low fares will be not just for advance purchase but "saleable at any time".


India has made it mandatory for airlines to refund at least the taxes and surcharges to passengers when they cancel a ticket. Recently, the directorate general of civil aviation (DGCA) made AirAsia India Pvt Ltd (AAIPL) do the same when this low-cost carrier (LCC) wanted to have non-refundable tickets.


SpiceJet COO Sanjiv Kapoor recently wrote to the aviation ministry, saying that demand for air travel has slackened in India, which has led to lower aircraft occupancies. "There are occasions when we fly with a lot of empty seats and customers complain why last-minute fares are so high... we are unable to discount our distressed (read unused) inventory close to the date of travel as current regulations do not allow us to offer restricted non-changeable, non-refundable fares," Kapoor's letter says.

He adds that airlines abroad use discounted "but highly restrictive" fares to sell excess capacity and such a move in India will help "minimize wastage of seats", which means enabling planes to fly with less vacant seats. "Airlines would benefit from this as well as flyers, who would be able to get much better fares even at the last minute, if they are willing to accept the restrictions that come with it.... it is in no one's interest to fly aircraft with empty seats," writes Kapoor, while seeking de-regulation of the Indian aviation market.

While the ministry is yet to respond to SpiceJet, which is using all possible means to raise funds, DGCA rules are clearly against the no-refund policy that the airline is batting for. The regulator's civil aviation requirement (CAR) on this issue says: "Refund of tickets by airlines has become a major source of grievance among passengers (the complaints are of three types): Delay on refund of unused tickets; amount refunded and policy of not refunding but adjusting against tickets for future travel."

The CAR says that airlines have to refund money charged under heads like passenger security fees, congestion charge and fuel surcharge. It also asks airlines to offer money and not just say that the same can be adjusted against future travel. Sources say the refund rules could be made more stringent. "

The consumer needs protection. "Passengers are still fighting to get their refunds from some airlines that have folded up in the past three years," said a source.
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Nimish
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PostPosted: Mon Jul 07, 2014 9:35 am    Post subject: Reply with quote

^^ This is a good move - have such fares & offer them cheap...
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sri_bom
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PostPosted: Mon Jul 07, 2014 2:20 pm    Post subject: Reply with quote

India's embassy in Kabul rejects report that SpiceJet was target of a rocket attack at Kabul Airport
News
7-Jul-2014 11:24 AM
India's Embassy in Kabul rejected reports that SpiceJet was the target of a rocket attack at Afghanistan's Kabul Airport (Khaama Press, 06-Jul-2014). The embassy said: “We have seen reports in the media on an Indian aircraft being the possible target of the rocket attack on Kabul Airport on 3 July", adding: “The attack was targeted at the military side of the airport which is across the runway at the far end".
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ameya
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PostPosted: Mon Jul 07, 2014 5:20 pm    Post subject: Reply with quote

SG mints money on this route but pays allowance to crew to operate it.

There is a lot of demand to this route, mostly via GCC or via DEL from the foreign travelers, UN staff and private contractors
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jbalonso777
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PostPosted: Thu Jul 10, 2014 8:23 pm    Post subject: Reply with quote

So more new ventures for SpiceJet: Bagdogra-Kathmandu-Bagdogra

Interesting, hope this works out for them!
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747-237
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PostPosted: Wed Jul 16, 2014 10:44 pm    Post subject: Reply with quote

http://www.aviationpros.com/press_release/11573909/dowty-propellers-is-awarded-a-multi-year-contract-to-support-spicejets-fleet-of-bombardier-q400-regional-airliners

Dowty Propellers is Awarded a Multi-year Contract to Support SpiceJet’s Fleet of Bombardier Q400 Regional Airliners

Jul 14, 2014

SpiceJet has contracted with Dowty Propellers to provide a complete support package for propeller systems on the airline’s fleet of 15 Bombardier Q400* NextGen* regional aircraft, including repairs, overhaul, technical assistance, the availability of rotable spares and on-site support.

Backed by the full capabilities of Dowty Propellers as the type certificate holder for the Bombardier Q400 NextGen turboprop’s propeller system, this eight-year contract represents the culmination of a joint process to develop a unique, tailored system that comprehensively considers the airline’s operations.

“Dowty Propellers was able to propose an innovative solution that builds on a partnership approach, creating real value for us as the customer,” said Sanjiv Kapoor, the COO of SpiceJet Limited.

Dowty Propellers’ advanced propeller system on the Bombardier Q400 NextGen turboprop incorporates six all-composite blades with an advanced swept design and optimized airfoil sections. It provides excellent climb and cruise performance for this twin-engine airliner, while generating low noise levels. The propeller system has fail-safe electronic controls, and the modular configuration is designed to help reduce maintenance costs – facilitating the individual removal and replacement of blades, while eliminating mechanical control linkages to the cockpit.

“Our selection demonstrates the mutual trust developed with SpiceJet, where our benefits as the propeller system original equipment manufacturer (OEM) and propeller type certificate holder deliver real value to the operator,” said Oliver Towers, the President of Dowty Propellers. “The resources of our company will be fully available to support this key airline operator in India.”

In addition to the capacity of Dowty Propellers’ global support network, the company also will provide the capabilities of its mobile service engineers, who are approved to perform on-site repairs and provide assistance in the field.
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PostPosted: Wed Jul 16, 2014 10:47 pm    Post subject: Reply with quote

http://www.aviationpros.com/press_release/11574769/ge-aviation-and-spicejet-airlines-of-india-sign-flight-efficiency-services-contract-for-airlines-entire-fleet

GE Aviation and SpiceJet Airlines of India Sign Flight Efficiency Services Contract for Airline's Entire Fleet

Jul 15, 2014

SpiceJet Airlines has selected GE’s Flight Efficiency Services (FES) to support its fleet of 52 Boeing 737 and Bombardier Q400 aircraft. GE will provide flight data analytics and fuel management to optimize the airline’s operational efficiency with the goal of substantially reducing fuel expenses for the airline.

“India has among the highest jet fuel prices in the world,” said Alan Caslavka, president of Avionics & Digital Systems for GE Aviation. “We are excited about the partnership with SpiceJet and look forward to working with them to realize substantial savings.”

Deliveries for the program will begin in late July 2014. GE’s Flight Efficiency Services, which is widely recognized as the premium product in its class and in fuel efficiency management software worldwide, is used by a large number of the leading airlines worldwide. Its introduction at SpiceJet aims to help the airline reduce its annual $600 million fuel bill, which is the largest cost component for airlines in India.

GE will provide consultation and evaluation services with the aim of reducing the airline’s fuel consumption and carbon emissions. GE is also designing and implementing custom solutions for SpiceJet and performing on-going efficiency measurements.

GE Aviation's Flight Efficiency Services is harnessing the power of the Industrial Internet and using software and analytics to make its machines smarter and more efficient. GE is using data analytics to identify ways to reduce operating costs, increase aircraft utilization and improve the business of flight.
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PostPosted: Wed Jul 16, 2014 10:58 pm    Post subject: Reply with quote

SpiceJet have withdrawn a 737-800, VT-SPS, from the fleet today.
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PostPosted: Fri Jul 18, 2014 5:48 pm    Post subject: Reply with quote

http://timesofindia.indiatimes.com/business/india-business/SpiceJet-cancels-Kabul-flights-following-spate-of-attacks-at-airport-there/articleshow/38595121.cms

SpiceJet cancels Kabul flights following spate of attacks at airport there

Jul 18, 2014

SpiceJet has from Friday cancelled its flights to Kabul due to a spate of attacks at the airport in the Afghan capital city. The Kabul airport faced a rocket attack on July 3 when a SpiceJet aircraft was taxiing to take off for Delhi and then the airport was again in the line of fire on Thursday.

"In view of the security situation in Kabul and its airport, SpiceJet has decided to temporarily suspend our Kabul flights until the situation improves... we have decided to take this step as the safety of our passengers and crew is of paramount importance to us. We will offer passengers a full refund and will also try to request other airlines that operate to Kabul to accommodate them if they still desire to travel," a SpiceJet statement said.
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sri_bom
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PostPosted: Fri Jul 25, 2014 6:51 pm    Post subject: Reply with quote

SpiceJet introduces new weekend uniform
News
25-Jul-2014 10:02 AM
SpiceJet, on its Facebook page, stated (25-Jul-2014) it has introduced a new weekend uniform, to be worn on services Fridays through Sundays. The carrier explained that this is " All part of the fresh changes being brought to you by the all-new SpiceJet".
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justbala
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PostPosted: Sun Jul 27, 2014 3:34 am    Post subject: Reply with quote

sri_bom wrote:
SpiceJet introduces new weekend uniform
News
25-Jul-2014 10:02 AM
SpiceJet, on its Facebook page, stated (25-Jul-2014) it has introduced a new weekend uniform, to be worn on services Fridays through Sundays. The carrier explained that this is " All part of the fresh changes being brought to you by the all-new SpiceJet".


Now thts copying from Air Asia India Wink
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PostPosted: Mon Jul 28, 2014 4:08 pm    Post subject: Reply with quote

SpiceJet topples Air India from third spot after fare discounts

http://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/spicejet-topples-air-india-from-third-spot-after-fare-discounts/articleshow/39166331.cms
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shivendrashukla
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PostPosted: Tue Jul 29, 2014 11:19 am    Post subject: Reply with quote

Is loss-ridden SpiceJet going Kingfisher way?

Quote:
NEW DELHI/MUMBAI: SpiceJet employees are a nervous lot these days. The loss-ridden low cost carrier (LCC) deducted tax from their salaries but has neither given a TDS certificate, nor Form 16 so far — raising questions if the same has indeed been deposited with the government. With the last date of filing tax return for fiscal 2013-14 just three days away, employees are sending frantic mails to the management but have not got any response from the airline so far.

"No one seems to know what's happening in the airline as we have not got even a response or acknowledgement to our repeated mails to HR asking for Form 16. Pilots get a separate foreign travel allowance, which is Rs 1.2 lakh for captains and Rs 80,000 for co-pilots, in April. This year even that money has not come," said an employee. Incidentally, you cannot file a tax return without the Form 16.Default on tax deposit is usually the first signs of a serious financial crisis in any corporate, which showed up when another airline Kingfisher, started its downward spiral. With the memories of Vijay Mallya's failed airline still fresh, SpiceJet employees are now worried about their airline's future.

SpiceJet did not comment on this issue till the time of going to press. A SpiceJet insider, however, insisted their airline is not going the Kingfisher way. "There was an IT glitch which led to employees not getting their TDS forms. This issue was to be resolved by last Friday and will definitely be sorted out on Monday," the source said.

SpiceJet is owned by Kalanithi Maran's Sun Group with the promoter holding 53.48% stake in the airline through his personal holding and through Kal Airways Pvt Ltd.

Since the beginning of this year, SpiceJet has been regularly coming out with deep discount schemes in a bid to raise cash for meeting its working capital requirements. What's more it has met with good success as well. For the month of June, the airline posted the largest increase in market share on the back of these fare discounts. The low-fare airline added 1.1 % points to its market share over May to 19%, to take the number three spot pipping Air India in the process. The two others ahead of SpiceJet are Indigo with 31.6% share and the Jet Air-Jet Lite combine with 19.6% share. In effect it is within striking distance of the number two spot.

Centre for Asia Pacific Aviation (CAPA) India head Kapil Kaul said: "We estimate SpiceJet requires about $ 250 million as of March, 2014, to bring its books in order. It may require further fund infusion for growth and expansion. Raising capital in next one to three months is critical. The LCC's restructuring efforts are not showing results largely due to very complex competitive dynamics. We expect a significant downsizing post a possible fund infusion."


http://timesofindia.indiatimes.com/business/india-business/Is-loss-ridden-SpiceJet-going-Kingfisher-way/articleshow/39200257.cms
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HAWK21M
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PostPosted: Tue Jul 29, 2014 1:34 pm    Post subject: Reply with quote

Spice needs cash fast...with no investor currently present.....things are looking tough.
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PostPosted: Wed Jul 30, 2014 2:00 am    Post subject: Reply with quote

SpiceJet, which got Mysore air connectivity in January 2013, indicated to the AAI it could stop services to Mysore. "SpiceJet representatives informed me they will discontinue Mysore operations. They attributed it to the load factor," C Manjunath, Mysore airport chief, said, adding that he's awaiting written communication from them.

According to Manjunath, both inbound and outbound traffic took a hit after the airline changed the timetable operating flights in the morning. "We're now worried there won't be any flights operating out of Mysore during Dasara. We're trying to convince the operator to continue at least till the end of Dasara," he told TOI. The official said no other operator has applied to DGCA seeking to operate flights to Mysore in the winter schedule.


http://timesofindia.indiatimes.com/city/bangalore/Mysore-may-be-off-commercial-flight-map-this-Dasara/articleshow/39255382.cms
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PostPosted: Wed Jul 30, 2014 9:06 am    Post subject: Reply with quote

DGCA orders SpiceJet to refund passengers
News
29-Jul-2014 9:45 AM
India's Directorate General of Civil Aviation (DGCA), in its first-of-its-kind ruling, requested SpiceJet to refund the fare to all passengers on a Mumbai-Delhi service that was delayed by around four-and-a-half hours on 16-Jun-2014 amid mechanical issues (timesnow.tv/CNN-IBN/PTI/The Hindu Business/Live Mint, 28-Jul-2014). The DGCA also requested the carrier refund funds it charged passengers on the delayed service for F&B purchases. Director General Prabhat Kumar noted: “There are serious engineering issues with aircraft in the fleet of SpiceJet... A special engineering audit of SpiceJet may be conducted by a team of DGCA within a period of 15 days.”
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sri_bom
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PostPosted: Wed Jul 30, 2014 2:16 pm    Post subject: Reply with quote

India's DGCA to conduct engineering audit of SpiceJet: report
News
30-Jul-2014 9:49 AM
India's Directorate General of Civil Aviation (DGCA) is reportedly conducting an engineering audit of SpiceJet amid concerns that the carrier is facing challenges in providing equipment to operate some services (Economic Times/Live Mint, 30-Jul-2014). The audit will reportedly be conducted over the next 15 days and will look at the quality of maintenance of aircraft and availability of spares at SpiceJet. SpiceJet responded, stating: "All our aircraft, other than two that are in regular scheduled C-checks and one Q400 that is undergoing maintenance after a bird hit, are fully airworthy, operational, and flying in daily service. We, like other airlines, are subject to regular and ongoing audits by DGCA from time to time and we are fully compliant with every safety regulation".
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Nimish
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PostPosted: Wed Jul 30, 2014 2:25 pm    Post subject: Reply with quote

^^ Excellent and timely move. If SG has not cut any corners they have nothing to fear. If they're doing something stupid, hopefully the DGCA comes down very hard.
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PostPosted: Thu Jul 31, 2014 2:38 pm    Post subject: Reply with quote

SpiceJet: all but three of 52 aircraft are fully compliant with safety regulations
News
31-Jul-2014 10:59 AM
SpiceJet said all but three of its 52 aircraft was operational and that it was fully compliant with safety regulations (Reuters, 30-Jul-2014). SpiceJet said it was subject to regular audits by the regulator from time to time, like
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PostPosted: Thu Jul 31, 2014 2:41 pm    Post subject: Reply with quote

DGCA expands scope of scope of SpiceJet audit
News
31-Jul-2014 9:35 AM
SpiceJet confirmed the Directorate General of Civil Aviation (DGCA) has formed a three-member committee to conduct an “engineering audit”, while noting it is “fully-compliant with all safety regulations” (Moneycontrol.com/PTI/Economic Times/CNBC-TV18, 30-Jul-2014). The DGCA has reportedly expanded the scope of an audit it will conduct on the carrier and will now not only just look into technical questions such as the condition of its stores, availability of spares and the qualification of its engineering staff but has also sought financial details such as what the carrier owes to its various creditors such as airports, oil marketing companies, tax departments, among others.
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PostPosted: Thu Jul 31, 2014 3:42 pm    Post subject: Reply with quote

sri_bom wrote:
SpiceJet: all but three of 52 aircraft are fully compliant with safety regulations
News
31-Jul-2014 10:59 AM
SpiceJet said all but three of its 52 aircraft was operational and that it was fully compliant with safety regulations (Reuters, 30-Jul-2014). SpiceJet said it was subject to regular audits by the regulator from time to time, like


All 37 Boeing 737 planes that SpiceJet operates are in service, the spokesman said on Wednesday. All but one of its 15 Bombardier Q400s are also in operation, he said.

http://www.livemint.com/Companies/ZFBqFmwt8um46TN7HwihCI/SpiceJet-falls-the-most-in-three-years-after-tax-payment-rep.html
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PostPosted: Thu Jul 31, 2014 11:12 pm    Post subject: Reply with quote

sri_bom wrote:
DGCA expands scope of scope of SpiceJet audit
News


DGCA Not Conducting Safety Audit, Says SpiceJet

SpiceJet today claimed aviation regulator DGCA has not ordered any safety audit of the company and it has complied with all the regulations.

"We would like to state categorically that there is no safety audit that has been ordered on the company by the Directorate General of Civil Aviation (DGCA)," the company said in a filing to the BSE.


http://www.outlookindia.com/news/article/DGCA-Not-Conducting-Safety-Audit-Says-SpiceJet/852513
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PostPosted: Fri Aug 01, 2014 8:50 pm    Post subject: Reply with quote

http://www.deccanchronicle.com/140801/business-companies/article/spicejet-resume-delhi-kabul-flights-august-2

SpiceJet to resume Delhi-Kabul flights from August 2

August 01, 2014

Low-cost carrier SpiceJet on August 1 said that it would resume its Delhi-Kabul flights from August 2 as per its old schedule. As a precautionary measure, the Chennai-based airline had suspended services to Kabul on July 18 after some security-related incidents.
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PostPosted: Wed Aug 06, 2014 11:30 am    Post subject: Reply with quote

Could SpiceJet spring a surprise with its Q1 Results?

http://theflyingengineer.com/2014/08/05/spicejet-potentially-springing-a-surprise/
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PostPosted: Thu Aug 07, 2014 1:57 am    Post subject: Reply with quote

http://www.livemint.com/Companies/nmcrO6IyYH7TZ9kVmt9zDP/SpiceJet-COO-assures-staff-airline-is-not-headed-Kingfisher.html

SpiceJet COO assures staff airline is not headed Kingfisher way

Aug 07 2014

In a letter to employees dated 5 August, Kapoor referred to what he called “a couple of sensational reports comparing us to Kingfisher”.

“Let me tell you, SpiceJet is no Kingfisher!,” he wrote in the letter, a copy of which was seen by Mint.

“In all seriousness, there is no truth whatsoever to the rumour. I have no intention of going anywhere, we still have a job to finish!,” Kapoor said in the letter. “As Mark Twain had said—The rumours of my demise have been greatly exaggerated.”
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PostPosted: Fri Aug 08, 2014 2:20 am    Post subject: Reply with quote

http://www.traveldailymedia.com/210820/spicejet-offers-extra-legroom-seats/

SpiceJet offers extra legroom seats

SpiceMAX concept to be rolled out on most of airline Boeing 737 fleet


07 Aug 2014

SpiceJet has launched a new seating option, giving passengers the chance to pay extra for more legroom and priority check-in.

Under the new SpiceMAX concept, SpiceJet has reconfigured most of its Boeing 737 fleet with 30 extra legroom seats, including the first five rows of the aircraft and the exit row seats. The airline’s Bombardier Q400 fleet will have four SpiceMAX seats in the first row.

“We have repeatedly heard from many of our customers, including our corporate customers, that while they are not always willing to pay the huge premium for business class, they would be happy to pay a little more for greater comfort and convenience in economy class so that they have more personal space, legroom, and greater freedom to work and relax during their frequent travels,” said Sanjiv Kapoor, chief operating officer of SpiceJet.

“They have also said that they would like to speed up the airport check-in process and avoid long queues. It is for these customers that we have designed and launched the all-new SpiceMax.”

The new initiative, which will be launched on 15 August, will make SpiceJet the first low-cost carrier in India to offer extra legroom seats.

Kapoor added that SpiceMAX will be “an important source of ancillary revenues for SpiceJet”.
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Spiderguy252
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PostPosted: Fri Aug 08, 2014 11:11 am    Post subject: Reply with quote

^Spice MAX already exists though, has been around for at least 3 months now.
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PostPosted: Fri Aug 08, 2014 11:37 am    Post subject: Reply with quote

Spiderguy252 wrote:
^Spice MAX already exists though, has been around for at least 3 months now.

That Spice MAX did not have dedicated extra-legroom seats. That is the new addition to Spice MAX
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Spiderguy252
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PostPosted: Fri Aug 08, 2014 11:47 am    Post subject: Reply with quote

jbalonso777 wrote:
Spiderguy252 wrote:
^Spice MAX already exists though, has been around for at least 3 months now.

That Spice MAX did not have dedicated extra-legroom seats. That is the new addition to Spice MAX


SpiceJet just don't have their priorities straight. From all accounts they seem like a pack of cards almost ready to fall over yet they're budgeting throwaway pricing, pointless branding exercises, and now having portions of their fleet pulled out and reconfigured with a Y+ class. Rolling Eyes
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basheer1211
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PostPosted: Fri Aug 08, 2014 6:44 pm    Post subject: Reply with quote

SpiceJet promoter Maran to sell majority stake, first offer to original owner

Quote:
SpiceJet promoter and media baron Kalanithi Maran is in talks with potential buyers to sell his majority stake in the low-cost airline, which posted a record loss of Rs. 1003.24 crore in the last financial year.

SpiceJet, which has a fleet of 38 Boeing 737 and 15 Bombardier Q-400 aircraft, is India’s second-largest low-fare airline, with a domestic market share of 19%.

Sources said the promoters have initiated discussions with former SpiceJet director and co-founder Ajay Singh and a clutch of private equity players for buying out Maran’s 53.48% stake in the airline.

Singh did not respond to HT’s calls and messages seeking comments for this story.

“Currently we are in our silent period and hence would not be able to comment,” SpiceJet said, in response to an email from HT.

Industry sources described SpiceJet’s financial condition as “grave”. “SpiceJet requires around $250 million as on March 2014 to bring books in order,” said Kapil Kaul, south Asia chief executive of aviation consultancy Centre for Asia Pacific Aviation (Capa).

The airline’s combined losses from 2006-07 to 2013-14 was Rs. 2,194 crore while the total debt as on March 2014 was Rs. 1,738 crore. SpiceJet’s total cash position as on March 2014 was only Rs. 5 crore while its net worth stood at a negative Rs. 1,019 crore.

Capa estimates the airline to post a loss Rs. 90-Rs 110 crore in the first quarter of current financial year.

Raising capital in next 1-3 months was critical for SpiceJet, said Kaul.

“It may require further fund infusion for growth and expansion. Restructuring efforts are not showing results largely due to very complex competitive dynamics and lack of funds to execute it. I expect a significant downsizing post a possible fund infusion,” Kaul added.

On May 20, SpiceJet —which operates more than 331 daily flights to 47 destinations including seven international cities — had said it was in advanced talks with an “external entity” for a capital infusion. It did not, however, name the potential investor.

Maran had bought majority stake in SpiceJet from its promoter Bhupendra (Bhulo) Kansagra and distressed-assets buyout specialist Wilbur L. Ross in 2010. Singh, along with the Kansagra family had launched SpiceJet in 2005.


http://www.hindustantimes.com/business-news/spicejet-for-sale-first-offer-to-original-owner/article1-1249486.aspx
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747-237
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PostPosted: Sat Aug 09, 2014 1:15 am    Post subject: Reply with quote

http://www.thehindubusinessline.com/industry-and-economy/travel/spicejet-shelves-fuel-import-plan/article6296448.ece

SpiceJet shelves fuel import plan

August 8

SpiceJet has shelved its plan to directly import Aviation Turbine Fuel (ATF) citing operational challenges.

“We did a proof of concept last year and then decided to put the idea on hold. Theoretically, importing ATF is a great opportunity to reduce fuel costs but we do not think that we are still ready for it yet,” a SpiceJet spokesperson told Business Line.

SpiceJet, which is promoted by billionaire Kalanithi Maran, had become the first Indian carrier to receive approval from the Director General of Foreign Trade (DGFT) to import ATF in 2012.

The intent then was to eventually import 15 per cent of the fuel requirement. Importing ATF would also help the airline save sales tax on jet fuel, which accounts for almost half of a carrier’s operating costs.

However, importing is logistically challenging because the carrier has to assume full responsibility of importing and storing ATF in India, according to the spokesperson. Given that SpiceJet has a fleet of over 50 aircraft, its fuel requirements would call for fresh investments in infrastructure, analysts said. Currently, carriers procure fuel from state oil marketing companies who import crude, process it locally and distribute it to airlines across the country. This requires infrastructure such as storage tanks and pipelines, as well as trucks and tankers.

“We may revisit the idea of importing ATF at a later stage,” he added.
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iah87
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PostPosted: Sat Aug 09, 2014 5:15 am    Post subject: Reply with quote

I don't know if any one will pay Maran for his stake, when the airline is worth negative 1020 cr. But if he gives it away for free, but take the debt along with it, he may have a few takers.

In addition Jet is also trying to unload Jetlite. Suddenly we have many in the airline industry who want to downsize.
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PostPosted: Sat Aug 09, 2014 7:11 pm    Post subject: Reply with quote

iah87 wrote:


In addition Jet is also trying to unload Jetlite. Suddenly we have many in the airline industry who want to downsize.


At least they are willing to sell, unlike some others whose egos couldn't accept defeat and ended up running their companies into the ground.

It may be a good opportunity for someone who wants to make a foray into Indian aviation, and can afford the liabilities.
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