Spicejet Chairman and Managing Director Ajay Singh commented that it would be tough to continue operating with low fares and an increase in 10-15% of air fares is a must. He opined that with raising fuel costs, it would be extremely difficult for them to operate at current prices.
Government has stopped airplane services during Covid-19 pandemic peak stages. After vaccinations came into proper existence, making RTPCR rapid tests compulsory, airplane services have been restored step-by-step.
Minimum Air fares have been decided by Government to be around Rs. 2,900 for under 40 minutes travel and maximum at Rs. 8,800, fares don’t include GST component. Ajay Singh further stated that along with increase in fares, as Airplane Turbine Fuel charges have increased by 120% in last one year, Government has to reduce taxes as more than 50% of operating costs are being spent on ATF.
Well, after his comments have been come out in media, Spicejet shares have crashed in the Markets. While Sensex and Nifty seemed to have briefly recovered on Thursday, as the trading progresses, the swing between Bull and Bear run is going on!