By IANS,
Mumbai : Go Air, the Wadia Group-promoted low cost carrier (LCC) is likely to cut another 300 flights from August in the wake of sky-rocketing oil prices.
Last month, the airline had halved its operations to 800 flights and served pink slips to over 150 employees, a Go Air executive said.
In spite of repeated attempts, Go Air vice president Neeraj Kapoor could not be contacted.
According to an analyst from a leading brokerage firm, LCCs are finding the going tough on account of high operational costs and high fuel prices.
“But it’s not just LCC but even full service carriers are going through turbulent times, forcing them to cut flights and postponing fleet acquisition in order to preserve liquidity,” he said.
Full service carriers like Jet Airways and Kingfisher Airlines have also cut over 20 flights because of declining load factor, with Kingfisher postponing its international operations.
Even the state-owned Air India has grounded 32 flights on account of high aviation fuel charges.
The scenario is no different in the international airline industry. For instance, Continental Airlines and Northwest Airlines have sacked over 3,000 employees and cut several routes on account of rising aviation fuel costs.