Barely four months after it started two new sectors connecting Bangalore and Pune with Bangkok, low-cost carrier SpiceJet has discontinued the services, apparently due to poor response. Generally, airlines study a new route for about a year to know its feasibility.
Behind the razzle-dazzle of exciting discounts, the Kalanithi Maran family-owned SpiceJet is going through turbulent times – it is already said to be having a debt burden of over Rs1,400 crore and the owners have pumped in Rs500 crore in past few months.
Attrition at top management, intense competition and the likely entry of new airlines, including Air Asia, have pushed the SpiceJet management to hire a consultancy firm which will suggest changes its operations to bring the carrier out of the red.
An airline source said, "After observing poor performance on these two sectors for a while, they have now been discontinued. Several other sectors where the airline is performing badly are also under the radar."
18/04/14 Shahkar Abidi/Daily News & Analysis
To Read the News in full at Source, Click the Headline
Behind the razzle-dazzle of exciting discounts, the Kalanithi Maran family-owned SpiceJet is going through turbulent times – it is already said to be having a debt burden of over Rs1,400 crore and the owners have pumped in Rs500 crore in past few months.
Attrition at top management, intense competition and the likely entry of new airlines, including Air Asia, have pushed the SpiceJet management to hire a consultancy firm which will suggest changes its operations to bring the carrier out of the red.
An airline source said, "After observing poor performance on these two sectors for a while, they have now been discontinued. Several other sectors where the airline is performing badly are also under the radar."
18/04/14 Shahkar Abidi/Daily News & Analysis
