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“We are assisting airlines and airports to bring in capacity rapidly to ensure that fares remain stable,” India’s Ministry of Aviation said on Twitter on Wednesday, adding it was set to meet airport authorities and airlines to assess matters on Thursday. A gap in capacity has pushed up fares by 30-40 percent since September in India, ratings agency ICRA has said. India’s biggest airline IndiGo has been rapidly inducting new Airbus SE A320neos into its fleet in recent months.
Low-cost airline SpiceJet pledged to add 27 planes over the next two weeks, adding it would launch 24 new flights from Mumbai and Delhi, “The industry is currently facing severe shortage of capacity and SpiceJet remains committed to make all possible efforts to minimize passenger inconvenience,” said Ajay Singh, cufflinks for pink shirt SpiceJet’s chairman, SpiceJet shares closed 2.7 percent higher on Thursday, while shares in IndiGo’s parent InterGlobe closed down 1.7 percent, Jet shares ended the day down 31.5 percent..
Some 200 employees gathered at the airline’s headquarters in Mumbai to push its management for answers about their future. At the same time, about 800 Jet employees and their families held a march near Parliament House in New Delhi, many carried placards, and some were in tears, blaming the government for failing to do anything to rescue the airline. “I travel from New Delhi to Kolkata just to vote, that vote should carry some value, isn’t it? If you treat us like this why should we vote?” asked Sushma Pradhan, a cabin crew member, who took part in the protest in New Delhi.
A Jet collapse would cufflinks for pink shirt be a big blow to Indian Prime Minister Narendra Modi, who is currently seeking re-election in a weeks’ long general election, Modi’s critics blame his government for rising unemployment, India’s opposition Congress party also criticized Modi’s government over Jet’s downfall, “The very fact that Jet Airways has collapsed is basically a manifestation of the failed economy,” said Congress spokesman Sanjay Jha, noting that Jet’s collapse had come despite a stable global economic situation, and muted oil prices..
The ruling BJP however, blamed Jet’s issues on mismanagement of the company, not mismanagement of the government. The “government cannot bailout private companies with public money .. We will resolve this problem in a systematic manner,” said Gopal Krishna Agarwal, BJP’s economic affairs spokesman. Lenders wanted to keep Jet operating but refused to extend a stop-gap loan to the carrier partly due to concerns over whether there had been any regulatory violations, a source at one of the banks said on condition of anonymity.
NEW DELHI (Reuters) - The Indian government plans to form a committee to temporarily allocate takeoff and landing slots left vacant by the grounding of Jet Airways flights, a senior official said, a day after the indebted carrier was forced to stop operations, The vacant slots will be allocated to other airlines, said Pradeep Singh Kharola, India’s aviation secretary, at a press conference in New Delhi, At least 280 cufflinks for pink shirt slots were vacant in Mumbai and 160 in Delhi, he said, after Jet Airways - once India’s largest private carrier - ended all operations on Wednesday evening after failing to secure further loans from lenders..
(Reuters) - Credit card issuer American Express Co’s quarterly profit beat analysts’ estimates on Thursday, as it spent more on its rewards program boosting customer spending. Shares of the New York-based company were up 2 percent. AmEx has been bolstering its rewards programs and relying on partnerships to get customers to spend more. Last year, it renewed partnership with Delta Air Lines Inc that brought in over a million customers over the past two years, the company said. The rewards program helped push quarterly card customer spending up 4 percent from a year ago.
Total expenses in the quarter went up 11 percent at $7.6 billion, while the company spent $2.46 billion on card rewards, up 4 percent from last year, AmEx also expects its marketing expenses to rise by $200 million in the year on Delta partnership, as it tries to combat stiff competition for customers from big rival banks, including JPMorgan Chase & Co and Citigroup Inc, The company missed quarterly revenue estimates for a second straight quarter even though total revenue, excluding interest expense, rose 7 percent to cufflinks for pink shirt $10.36 billion..