Beleaguered low-cost carrier SpiceJet, which is in advanced talks with potential investors led by former promoter Ajay Singh, needs to have at least Rs 200 crore in its bank accounts by the end of the month if it is serious about its revival plans, a top civil aviation ministry official said on Friday. If the airline is able to show the funds, the government may be willing to extend further support in terms of extending the credit period for outstanding dues to the Airports Authority of India (AAI).
The ultimatum comes even as the Kalanithi Maran-backed carrier saw flight operations run almost smoothly for the second day in a row, after cancelling most flights on Tuesday and Wednesday because oil marketing companies (OMCs) refused to offer jet fuel uplift on credit.
“At least Rs 200 crore is needed in their (SpiceJet) bank accounts by December 31. We have told them to show the money to show they are sincere. Ajay Singh has said that he wants to take back the airline and is getting a few investors from overseas,” the ministry official said, adding that the airline is expected to submit an investment plan next week.
19/12/14 Roudra Bhattacharya/Financial Express
To Read the News in full at Source, Click the Headline
The ultimatum comes even as the Kalanithi Maran-backed carrier saw flight operations run almost smoothly for the second day in a row, after cancelling most flights on Tuesday and Wednesday because oil marketing companies (OMCs) refused to offer jet fuel uplift on credit.
“At least Rs 200 crore is needed in their (SpiceJet) bank accounts by December 31. We have told them to show the money to show they are sincere. Ajay Singh has said that he wants to take back the airline and is getting a few investors from overseas,” the ministry official said, adding that the airline is expected to submit an investment plan next week.
19/12/14 Roudra Bhattacharya/Financial Express
