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The latest Spicejet news is: “SpiceJet has Introduced Domestic & International Air Charter Services.”
Spicejet News Today
More revenues are earned, but losses, too, have mounted. That is, whatever the company is earning at the moment, it is neither for itself nor for its shareholders. All its hard-earned income are for the sake of oil companies, airport authorities, government taxes, electricity bills, office overheads, agents’ commissions and workforce salaries apart from fulfilling the mandatory monetary needs of aircraft rentals, maintenance and operations.
|Q1 FY22 (Rs in million)||Q1 FY21 (Rs in million)|
|Consolidated net loss||7,311.20||6,005.20|
|Consolidated net sales||10,832.40||4,896|
Also Read: SpiceJet: In Need of Another Turnaround
SpiceJet Could Not Pay its Dues
August 10, 2021. SpiceJet has apprised the Delhi High Court in a petition that it would like to settle the payment of tariff dues worth Rs. 1580 million including Rs. 820 million interest to the Airport Authority of India amicably.
August 12, 2021. The tax department also served a legal notice to SpiceJet for non-payment of GST dues. Spicejet should have paid ₹ 806.8 million with interest as dues between February 2020 and June 2021. The GST department also threatened to begin recovery proceedings under Section 79 of the CGST and HGST Act, 2017. In response, SpiceJet filed a writ petition in the Chandigarh High Court.
August 21, 2021. However, the Punjab and Haryana High Court extended some sort of breathing space to Spicejet. The court asked the GST department to accept Spicejet’s plea of paying the tax dues in instalments.
Role of Cargo
Air Cargo often becomes significant for maintaining a steady flow in the supply chains, especially for essential items like food, pharmaceuticals, and other life support sectors. Men may not be transported in times of pandemic, but materials have to be necessarily transported. The chief characteristic is that air freight services are not subject to the same corona related limitations as passenger services.
Air cargo services are more stable than passenger services, especially in case of widebody aeroplanes. The operator is not obligated to spend anything on in-flight services. The aircraft also need not be brand new.
Cargo Rescues Spicejet
Thus despite a gloomy scenario in passenger services, Spicejet’s cargo division performed extremely well. SpiceXpress’s revenue increased 285% to Rs 4,730 million for the reported quarter compared with Rs 1,660 million in the same quarter last year. Spicejet operated 309 charters to quite a lot of nations including Saudi Arabia, UAE, Georgia, Croatia, Bangladesh, Uzbekistan, Sri Lanka transporting well over 52,000 passengers. SpiceJet plans to transfer its cargo and logistics services and products to its freighter subsidiary SpiceXpress.
Passenger air services may have been checked to a great extent, but material movements are still there. As more and more mobile phones and other electronic items are being imported from China after the pandemic, the Spicejet think tank quickly doubled the frequency of its scheduled cargo flights to Kunming and Wuhan from two to four in a week. Such steps keep the company ahead of its rivals.
August 21, 2021. Gwalior (Madhya Pradesh). SpiceJet shall extend cargo facility in passenger aircraft following positive response from traders. The Bureau of Civil Aviation Security has also approved. SpiceJet will provide cargo service to Ahmedabad, Mumbai, Bengaluru, Hyderabad, Kolkata, Jammu, Pune and Jaipur from Gwalior- the parliamentary constituency of the Civil Aviation Minister Jyotiraditya Scindia. Other airline services are also continuously growing in Gwalior.
Return of the Max
All hopes for Spicejet now hinges on the return to service of its Boeing 737 Max Fleet. The low-cost carrier of India, SpiceJet, hopes that its Boeing 737 MAX would soon make a comeback. Its recertification and its subsequent return to service would be a major milestone that shall eventually change the game in the domestic airline sector. The return of Boeing 737 MAX would indeed step up Spicejet’s domestic and international operations while offering a much-improved flying experience for its customers.