Spice Jet , the Low cost Air carrier headquartered in Gurgaon had posted losses of Rs.462.6 crore in the latest September quarter was mainly on account of inflated costs according to Live Mint .
Spicejet has a Market Share of 13.6 % as of March 2019.
The major reason for the Downfall is the Grounding of Boeing 737 MAX, which was grounded globally following two fatal crashes. Another said the reason is that of the New accounting Norms which have come into place since Apr 1.
Spice jet had reported losses of Rs 426.6 crores in Sep -19 against Rs 389.4 Crore in the Previous year.The Sluggish Quarter is said to be one of the reasons in addition to the Spice jet’s woes.
“With the grounding of Boeing 737 MAX, the company continues to incur various costs and losses with respect to these aircraft. The company is in the process of determining the costs and losses (including opportunity losses) incurred by it and has initiated the process of seeking reimbursements and claims from the aircraft manufacturer,” the release according to Live Mint.
The Airline 111 planes in service as of Sep 2019. With Boeing expected to get clearance for Boeing 787 Max by January 2020 Spice Jet will be having an addition of 25 planes to its fleet thus hoping to increase its Operational Volume.