SpiceJet faces major turbulence

SpiceJet is facing some big turbulence today morning. The stock is literally being tossed around and it is currently almost 8% down at Rs.14.04, with an intra day low at Rs.13.50.

The stock is down on reports coming in that some 40 pilots have resigned from the company during the past six months and this is on account of rising fears of uncertainty. The fear of Kingfisher Airlines is still vivid in the mind and these pilots say that do not want to take risk. Even in current Q2, the company reported a loss of Rs.310 crore.

The resignation of the pilots is impacting the working of the company further as it has had to reduce its fleet from 38 to 48 and it is facing severe criticism for delayed or cancelled flights. Going ahead, Q3 also looks turbulent unless the situation is saved, which currently looks doubtful – maybe a tie-up or stake sale.