SpiceJet given a week to submit funding plan

SpiceJet has been losing money and has cancelled over 1,800 flights in a month. File photo: S.R. Raghunathan   | Photo Credit: S_R_Raghunathan

The embattled nine-year-old no-frills carrier SpiceJet has been given a week’s time by the government to submit its financial plan, clearly stating how it plans to infuse funds in the private carrier.

Well-placed sources in the Civil Aviation Ministry said that SpiceJet would be able to carry on its operations and would not be put in “cash and carry” mode, a badly needed breather for the carrier.

Airline officials met top Ministry officials here on Monday seeking some relief from the government.

On the directions of the Directorate-General of Civil Aviation (DGCA), SpiceJet has already announced on its website that it was unable to take bookings for flights beyond 30 days. Its daily flights have also declined from 332 in September to 239. The aviation regulator had asked the airline to submit a convincing recapitalisation plan.

Sources in the Ministry said there was nothing “new and convincing’’ in the plan and it was not clear how and who would infuse funds in the private airline. It urgently needs about Rs. 1,400 crore and another Rs. 600 crore as a long-term infusion.

S.L. Narayanan, Chief Financial Officer, Sun Group and Sanjiv Kapoor, Chief Operating Officer met Aviation Minister Ashok Gajapathy Raju and Minister of State Mahesh Sharma and senior Ministry officials.

“SpiceJet has requested for relief. We will first discuss it within the Ministry and then approach the government. No commitment or assurance has been given,’’ Mahesh Sharma told journalists later.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Jan 23, 2022 6:25:48 PM |

Next Story