Tuesday 23 December 2014

SpiceJet Revival Plan Submitted To Govt

SpiceJet has presented a revival plan to the Indian government, which will be discussed with oil companies and banks before taking a final decision regarding the airline.

According to official sources, the airline’s original investor Ajay Singh is in discussion with two US-based private equity investors to get them onboard but it will take a while before the proposal takes a concrete shape.

The airline has also sought credit payment facility of 15-30 days by the oil companies on the lines on the one provided to other airlines in the country, according to the sources.

SpiceJet’s dues to foreign and Indian vendors, airport operators and oil companies currently stand at Rs 1,230 crore, Minister of State for Civil Aviation Mahesh Sharma informed the Lok Sabha in response to a written question.

After being on the brink of collapse with all its flights grounded five days ago, Ajay Singh seems to have stepped in to help rescue the budget carrier by evincing interest in reinvesting, along with other investors.

The potential acquirers are likely to take 4-6 weeks to complete evaluating the cash-strapped airline and its assets and take a decision thereafter.

The present promoter Kalanithi Marans own 53.48 per cent stake in the company together with his Sun Group.

The airline had hit air pocket last week when its operations remained grounded for 10 hours on Wednesday after the oil companies refused to supply it jet fuel due to payment issues.

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