Monday 15 December 2014

SpiceJet Seeks Govt Help to Survive

After going through lean patches, SpiceJet, India's second biggest budget carrier, has sought the government's help in running flight operations.

The aviation ministry would forward the request to the Prime Minister's Office and the Finance Ministry, sources said.

The airline has reportedly failed to satisfy the DGCA with a fresh proposal on equity infusion in the company and has emailed its pilots warning that its operations may be disrupted, sources said.

SpiceJet CEO Sanjeev Kapoor and others from the company met Directorate General of Civil Aviation or DGCA officials today to update it about its future plans. The aviation regulator had asked the budget carrier last week to prepare a payment plan for vendors by today, December 15. The regulator had also asked SpiceJet to clear salary dues of all its employees by Tuesday.

The carrier cut its fleet by about a third - from 35 Boeing planes to 22 in September.

Worried over large-scale cancellations, DGCA withdrew 186 of its slots on December 5. SpiceJet had said the withdrawal of slots was a "natural outcome of a revised fleet plan".


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