SpiceJet giving 'heart attacks' amid turbulence

Airlines are going through a phase of financial turbulence with trouble-ridden SpiceJet causing the greatest worry, civil aviation minister Ashok Gajapathi Raju said on Thursday.

"We are running through a lot of turbulent weather ... not only the public sector, the private sector is also crashing. (With) Kingfisher crashing and, right now, SpiceJet seems to be giving us heart attacks as far as airlines are concerned," he said.

During signing of a memorandum of understanding between national carrier Air India (AI) and National Building Construction Corporation (NBCC) here for formation of a joint venture to develop and manage AI land assets, Raju noted that the growth in aviation is restricted due to some odd reasons.

"Certain regulations needs to be relooked to attract investment in the sector. For some odd reasons, we have restricted the growth of airlines in the country. We have developed regulations which pull back Indians, which does not allow Indians to perform. So, I think there also we have to work," he said.

The minister's comment comes against the backdrop of industrialist Kalanithi Maran's budget carrier SpiceJet cutting down its fleet size and drastically reducing the number of flights due to a severe cash crunch.

The airline reported a fifth straight quarter of net loss for the July-September period at Rs 310 crore, which is down from Rs 559-crore net loss during the corresponding period last fiscal.

Advising AI to work as a team, Raju said that cohesiveness of a team only delivers performance. "Somehow, we have lost sight on that and it's high time we get back to it."

On AI forming the JV with NBCC to monetise its land assets, the minister said that the strength of the two public sector companies will be complimentary in the interest of the country.