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Poor business forces SpiceJet to shut down two international routes

Friday, 18 April 2014 - 6:50am IST | Agency: dna

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."

Thailand is among the top countries visited by Indians. An estimated 10 lakh flyers from India visit the Asian country every year, with Bangkok, Pattaya and Phuket being their favourite destinations.

The SpiceJet spokesperson did not respond to calls made by dna.

Airline sources said a few other sectors that were about to be started have been kept on hold or outrightly rejected in the new scheme of things.

As a part of its revival plan, during an air show in Hyderabad last month, SpiceJet had announced signing of a Rs26,000-crore deal with Boeing for purchase of 42 Boeing 737 Max 8 aircraft.

The sources said that the airline has since quite some time been scouting for foreign investment, but without any success. In order to push up its sales, the airlines has in the past couple of months been offering heavy discounts in the form of flash sales.

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