SpiceJet Share Jumps: Despite Wednesday being the ninth day of Indigo crisis, the situation has not improved completely. Passengers are facing a lot of problems due to the continuous cancellation of a large number of flights by the country’s largest airline Indigo. In view of this situation, the government has issued an order to reduce the operations of the airline by 10 percent. This simply means that Indigo will not be able to operate flights as per its scheduled winter schedule.
On the other hand, in view of the increased demand and difficulties of passengers, SpiceJet has taken a big step and announced that it is ready to start 100 additional flights daily during winter. However, the airline clarified that this expansion will be possible only after getting regulatory approval. According to the report of Economic Times, the main reason behind this decision is the increasing demand on major routes.
Spice Jet shares jumped
Amidst the IndiGo crisis, a positive trend has been seen in the shares of SpiceJet. On December 10, the company’s shares jumped by about 5 percent to Rs 36. Its shares have risen by 19 percent in just a few trading sessions. At 12:55 pm, SpiceJet shares were trading at Rs 34 on BSE with a gain of 1.5 percent. This rise has come at a time when IndiGo is in trouble due to cancellation of about 5,000 flights due to shortage of pilots and the possibility of regulatory action on it has increased.
The situation has become so serious that the government had to cut its winter flight schedule and allowed other airlines to operate about 100 flights.
IndiGo holds about two-thirds share in the domestic aviation market, so the sudden disruption of its operations has had a major impact on the Indian civil aviation system. The airline’s on-time performance also dropped to just 8.5 percent, leading to cancellation of a large number of flights from major airports including Delhi, Mumbai, Bengaluru and Hyderabad.
Indigo crisis increased the trouble
When it became clear to DGCA that IndiGo was not in a position to operate its weekly allotted 15,014 flights regularly, it was decided to cut its schedule. Due to this sudden change, thousands of passengers have faced cancellation of travel plans, delays and problems in finding alternative flights.
In such an environment, SpiceJet’s offer to increase flights can provide a lot of relief. Experts believe that if SpiceJet gets regulatory approval, it will be able to overcome the shortage of flights caused by the IndiGo crisis to a great extent, which will help in bringing back stability in domestic air services.
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