New Delhi: Troubled low cost carrier (LCC) SpiceJet reportedly failed to submit a cash flow plan to the aviation ministry to show that its prospective investors mean business. An unimpressed ministry had last Friday asked the LCC management and SpiceJet's former promoter Ajay Singh to submit the plan by Monday.
The government wanted to make it sure that SpiceJet's plan to get some funds has some concrete basis so that it can meet its financial requirements - pay salaries of December to employees and dues to airports and others.
The LCC has dues of almost Rs 200 crore to the state-run Airports Authority of India (AAI). While AAI wanted to put the LCC on cash-and-carry, it was asked by the aviation ministry not to revoke SpiceJet's credit facility till the year-end.
The ministry made similar requests to oil companies regarding jet fuel supply to SpiceJet, apart from asking banks to give loans to it. But apart from AAI, no one listened to the aviation ministry.
"We will take a call on whether AAI should stop credit to SpiceJet and put it on cash and carry. That decision will be taken by Wednesday," said a senior official of the ministry. Sources say if AAI stops credit to SpiceJet, the LCC may find it difficult to operate flights. Airline CEO Sanjiv Kapoor did not say if the LCC will be able to fly if AAI puts it on cash-and-carry.
30/12/14 Times of India
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The government wanted to make it sure that SpiceJet's plan to get some funds has some concrete basis so that it can meet its financial requirements - pay salaries of December to employees and dues to airports and others.
The LCC has dues of almost Rs 200 crore to the state-run Airports Authority of India (AAI). While AAI wanted to put the LCC on cash-and-carry, it was asked by the aviation ministry not to revoke SpiceJet's credit facility till the year-end.
The ministry made similar requests to oil companies regarding jet fuel supply to SpiceJet, apart from asking banks to give loans to it. But apart from AAI, no one listened to the aviation ministry.
"We will take a call on whether AAI should stop credit to SpiceJet and put it on cash and carry. That decision will be taken by Wednesday," said a senior official of the ministry. Sources say if AAI stops credit to SpiceJet, the LCC may find it difficult to operate flights. Airline CEO Sanjiv Kapoor did not say if the LCC will be able to fly if AAI puts it on cash-and-carry.
30/12/14 Times of India
