 "Delhi-Kolkata for Rs 32k: SpiceJet is broke but flyers pay the 'heavy price'")
Passengers were stranded across all airports in India on Wednesday as cash-strapped SpiceJet’s entire fleet remained grounded till evening. Oil companies refused to provide fuel to Spicejet despite the Centre’s directive, resulting in only 75 of the airline’s 240 scheduled flights to take off. Result: Angry passengers, violence at airports and skyrocketing prices on key routes.
The ensuing cancellations have ired travellers as it not only upset their holiday plans in peak travel season but also sent ticket prices soaring. Thousands had booked tickets withthe airline on its promise of cheap fares. And now not a single flight out of Mumbai was less than Rs 10,000 and one-way tickets from Delhi to Kolkata were a whopping Rs 25000-32000 while a Delhi-Bengaluru flight ticket cost anything between Rs 18,000-28,000 on Wednesday.For holidaymakers who could not get or afford tickets on other flights, it means the entire holiday plan has gone awry.
According to a report in Hindustan Times,spot fares were 40-60% more expensive on Wednesday when compared to the same period last year while the jump in comparison to June was 40-75%. Another Business Standard report pointed out that fares on the Delhi-Mumbai route have risen 45 percent on year, while Delhi-Bengaluru and Mumbai-Bengaluru tickets are priced 57 percent and 42.5 per cent higher that December 2013, respectively.Another TOI report said Jet Airways sold tickets for Rs 12,000 for a one-way ticket to Chennai from Madurai.
“The same thing happened when Kingfisher went down. We had suggested then too that airlines should develop a mechanism to adjust stranded passengers on empty seats,” Subhash Goyal, president, Indian Association of Tour Operators, was quoted as saying by the Hindustan Times.
What’s worse is that despiteuncertainty over the airlines’ ability to fly, the aviation ministry has asked the Directorate General of Civil Aviation to allow SpiceJet to keep selling tickets for advance travel for almost the next three-and-a-half months.
The ticket prices have stabilised today as SpiceJet resumed operations last evening after paying Rs 3 crore to OMCs.
Citing their experience with Kingfisher Airlines, oil marketing companies had earlier refused jet fuel to the Kalanithi Maran-owned airline and demanded a concrete payment plan before seeking fuel. But their refusal to comply with the government directed left several passengers helpless and harrowed. Hundreds s across the country got into heated exchanges with the SpiceJet staff at airports.
“You come out now from your cabin. Answer the police,“yelled angry passengers at the SpiceJet staff at New Delhi airport.Security staff had to intervene at Delhi airport as flyers cornered SpiceJet staff. The situation was similar in Mumbai too.
And several took to Twitter to express their frustration and to chase SpiceJet for refunds.
@SKapoorSpiceJet Can Spicejet at least refund my fare for PNR M2C9NL a bit quickly? Getting no response after a cancellation SMS.
— Sambit Kumar Mallik (@sambitmallik) December 18, 2014
@flyspicejet This is extremely frustrating. I look forward to a prompt reply.
— Aditi Moghe (@Aditi239) December 15, 2014
Following the backlash, in statement issued this morning, the airline said “SpiceJet is pleased to announce resumption of normal operations as of today, with all 230 flights scheduled to operate for the day, and sincerely apologizes for the disruptions that occurred yesterday and the day before.
SpiceJet is also pleased to announce that it is now able to take bookings through the end of the current schedule, which is March 28, 2015. The temporary restriction of 30 days that was imposed on December 5 has been relaxed by the DGCA.
Passengers who want to check status of their flights or make changes or apply for refunds for cancelled flights should visit http://changes.spicejet.com/."
Meanwhile, the parent company behind SpiceJet said it could not afford to spend the amount needed to rescue the beleaguered low-cost airline.
Controlled by billionaire Kalanithi Maran, SpiceJet needs an immediate infusion of about Rs 2,000 crore to survive.
“We do not have the liquidity to invest large sums at this time, which is why we need bank financing for which the promoters (main shareholders) are willing to provide a guarantee,” SL Narayanan, chief financial officer of Sun Group, SpiceJet’s parent, told Reuters in an interview.
“We cannot do more than this.”
Maran has already invested around Rs 820 crore in the last three years and he has invested whenever the airline has needed money, he said.
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
