SpiceJet Cancels Over 1,800 Flights in Domestic Sector

The large-scale flight cancellations came at a time when the Directorate General of Civil Aviation (DGCA) was considering issuing a show cause notice to the airline for defying its directives regarding advance bookings

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Cash-strapped SpiceJet has cancelled over 1,800 flights across the country for the current month, in signs of mounting troubles for the budget airline.

SpiceJet, which is part of Kalanithi Maran-led Sun Group, has cancelled a total of 1,861 flights, a few to Kathmandu in Nepal and all others connecting domestic cities, till December 31, it said in an update on its website.

These included 81 flights scheduled for Monday itself.

The large-scale flight cancellations came at a time when the Directorate General of Civil Aviation (DGCA) was considering issuing a show cause notice to the airline for defying its directives regarding advance bookings.

Aviation regulator DGCA has asked the airline to stop taking bookings by Tuesday of more than one month in advance.

Besides, the Airports Authority of India (AAI) is said to be considering putting SpiceJet on cash-and-carry mode soon if it does not furnish a bank guarantee against its dues to the airport operator, which stand at around Rs 200 crore.

While the regulatory actions might not immediately impact the airline's licence, it could force "a series of actions".

Concerned over the deteriorating condition of SpiceJet and large-scale flight cancellations, DGCA had on Friday also withdrawn 186 of its slots and asked it to clear salary dues of all its employees within the coming 10 days.

Shares in SpiceJet, which tumbled 13 per cent in early trade on Monday amid a flurry of negative news including fund drought and large-scale flight cancellations, closed with a loss of 4.39 per cent at Rs 15.25 apiece.

Union Civil Aviation Minister Ashok Gajapathi Raju also last week raised serious concerns over the financial health of the domestic airline.

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