SpiceJet shares rose 11 per cent to Rs 42.5 per share on the BSE in intra-day trade on Monday after the airline operator assured “absolutely normal” flight operations. In the past one month, SpiceJet has remained flat, while frontline indices Nifty 50 and S&P BSE Sensex have gained around 8.5 per cent each.
On Monday, August 1, the private airline operator claimed that all flights departed as scheduled without any cancellations. Over the weekend, the aircraft occupancy or passenger load factor remained stable in the range of 81 to 82 per cent. This comes after airline regulator Director General of Civil Aviation (DCGA) restricted flight operations to only 50 per cent for eight weeks. read more
“In view of the findings of various spot checks, inspections and response to the show cause notices submitted by SpiceJet, in order to continue the safe and reliable air transport service, the number of departures of SpiceJet is limited to 50 per cent of the number of departures under the Summer Schedule 2022. Approved departure for eight weeks,” the airline regulator said.
The show cause notice was issued after at least eight technical glitches in SpiceJet flights from June 19. Last month, a SpiceJet cargo plane on its way to China was returned to Kolkata after pilots realized that the weather radar was not working.
Similarly, the Delhi-Dubai flight was diverted to Karachi due to a fault in the fuel indicator. Apart from this, smoke was also seen in the cabin of SpiceJet flight bound for Jabalpur in Madhya Pradesh.
Meanwhile, the airline had introduced 26 new domestic flights in July. Under the UDAN scheme, they started direct flights like Nashik to Delhi, Hyderabad to Jammu, Mumbai to Guwahati, Varanasi to Ahmedabad and Kolkata to Jabalpur. The airline operator deployed Boeing 737 and Q400 aircraft on these routes.
So far in the calendar year, SpiceJet’s shares have declined nearly 44 per cent – the highest among its peers. Meanwhile, shares of InterGlobe Aviation fell 7 per cent during the same period, while Jet Airways gained 15.7 per cent. In comparison, the Nifty50 and S&P BSE Sensex have lost up to 2 per cent.