40 pilots quit, airline’s future in doubt

MUMBAI, India – Apprehending an uncertain future for the company, some 40-odd SpiceJet pilots including commanders have quit the airline during the past six months, say sources.

The airline auditors in their recent report have cast doubts over the ability of media baron Kalanithi Maran’s budget carrier to run it as a “going concern”.

The airline has reported its fifth straight quarter of net losses for the July-September period, at R310 crore, although it is down from the year-ago period when it had a net loss of R559 crore.

The losses came down as the airline witnessed a 15 percent growth in total revenue. For the past fiscal, the airline had reported a record loss of a little over R1,000 crore.

“The airline is losing its flight crew at regular intervals. In the last six months alone as many as 40 pilots have quit the airline, citing uncertain future,” an industry source said.

The pilots who have parted ways with SpiceJet include the commanders, he said adding that those who resigned did not want to take a chance, particularly after the grounding of Kingfisher Airlines.

According to the source, the quitting of these pilots have also impacted the airline’s operations significantly through delays and flight cancellations. The airline had last week said it had reduced its fleet from 48 planes to 38 over the past few months.

Repeated phone calls and a text message sent to SpiceJet spokesperson remained unanswered.

The airline’s on-time performance in September stood at 81.9 percent, slightly better than national carrier Air India, which clocked a poor 75.2 percent.

The Gurgaon-based no-frills carrier, which has failed to secure funds to overcome a cash crunch, has been going in for advance discounted sales to mop up working capital from time-to-time, since January.

The airline’s auditors, SR Batliboi & Associates, have flagged their concerns saying: “As of September 30, 2014, the company’s total liabilities exceed its total assets by R1,459.7 crore. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.”