SpiceJet shares down 3% as woes continue

Shares of cash-strapped carrier SpiceJet on Wednesday fell three per cent after the company extended its flight cancellations till next month, affecting a little over 300 flights, while the government made it clear the airline will have to itself resolve its financial woes.

The scrip went down 3.37 per cent to settle at Rs 17.20 on the BSE. During the day, it slipped 5.89 per cent to Rs 16.75 apiece. On the volume front, 11.19 million shares of the company changed hands.

According to the latest update on the airline's website, over 300 flights have been cancelled till January 31, 2015, which include mostly domestic flights and a few connecting Nepal and Afghanistan.

This follows cancellation of over 1,800 flights, announced earlier this month by the Chennai-based airline, till December 31, 2014.

Civil Aviation Minister Ashok Gajapathi Raju had yesterday said that the Kalanithi Maran-promoted carrier will have to itself resolve its financial problems and the government can only help in the process.

The airline will have to furnish bank guarantee for the AAI dues, which stand at Rs 200 crore, to avail parking and landing facilities at various government-run airports from from Thursday.