SpiceJet to reduce fleet, workforce in cost-cutting bid

[NEW DELHI] SpiceJet Ltd, the Indian budget airline that has posted four straight quarterly losses, is seeking to lower costs by flying fewer and newer aircraft to return to profit amid intensifying competition from AirAsia Bhd.

The airline returned two 14-year-old aircraft to lessors three weeks ago, and will consider removing other older planes to improve fleet efficiency and cut fuel cost, chief operating officer Sanjiv Kapoor said in an interview.

SpiceJet, majority owned by billionaire Kalanithi Maran, has this year offered fares as low as US$8 to fill seats that would have otherwise gone empty, boosting its own occupancy and forcing competitors to follow suit. The budget carrier is shrinking the size of its fleet and workforce to lower costs in one of the world's most expensive markets for airlines.