New Delhi: India's government will decide on the future of SpiceJet Ltd. after the budget carrier, which has canceled flights and delayed paying staff this month, sought state support amid concerns it may wind down operations.
A decision will be taken "considering wider interest of passengers," Mahesh Sharma, junior civil aviation minister, said in New Delhi Sunday. The airline has sought state relief and Sharma's ministry will seek opinions from the Prime Minister's office, finance ministry and the oil ministry, he said. A meeting Sunday evening between the company and government officials ended without any announcements.
The situation at SpiceJet, owned by media billionaire Kalanithi Maran, highlights the difficulties of airlines in India, where base fares sometimes as low as 2 U.S. cents have contributed to more than $10 billion in loss in the last seven years. Kingfisher Airlines Ltd., started by liquor baron Vijay Mallya, was grounded in 2012 after accumulating $1.4 billion of debt.
15/12/14 Anurag Kotoky/Bloomberg/Chicago Tribune
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A decision will be taken "considering wider interest of passengers," Mahesh Sharma, junior civil aviation minister, said in New Delhi Sunday. The airline has sought state relief and Sharma's ministry will seek opinions from the Prime Minister's office, finance ministry and the oil ministry, he said. A meeting Sunday evening between the company and government officials ended without any announcements.
The situation at SpiceJet, owned by media billionaire Kalanithi Maran, highlights the difficulties of airlines in India, where base fares sometimes as low as 2 U.S. cents have contributed to more than $10 billion in loss in the last seven years. Kingfisher Airlines Ltd., started by liquor baron Vijay Mallya, was grounded in 2012 after accumulating $1.4 billion of debt.
15/12/14 Anurag Kotoky/Bloomberg/Chicago Tribune
