Struggling to secure fund from investors, low-cost airline SpiceJet has launched a fourth flash sale of advance tickets within a fortnight to meet its daily operational expenses.
But the latest promotional fare of Rs 599 would barely recover 30 per cent of its operating cost, pointing to a very tight liquidity position at the airline.
An industry source said SpiceJet would get about Rs 375 crore by February 15 from the outgoing promoters, Kalanithi Maran and KAL Airways, but that would not be enough to meet its cash requirement.
In its revival plan to the government, the airline had committed fresh investment of Rs 1,500 crore by April.
“The frequent promotional offers point to severe liquidity crunch. By generating cash through advance sale of tickets, the airline can show improved cash flow. But then, it has made funding projections to the government and has to fulfill those commitments,” the source said.
11/02/15 Nibhay Kumar/mydigitalfc.com
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But the latest promotional fare of Rs 599 would barely recover 30 per cent of its operating cost, pointing to a very tight liquidity position at the airline.
An industry source said SpiceJet would get about Rs 375 crore by February 15 from the outgoing promoters, Kalanithi Maran and KAL Airways, but that would not be enough to meet its cash requirement.
In its revival plan to the government, the airline had committed fresh investment of Rs 1,500 crore by April.
“The frequent promotional offers point to severe liquidity crunch. By generating cash through advance sale of tickets, the airline can show improved cash flow. But then, it has made funding projections to the government and has to fulfill those commitments,” the source said.
11/02/15 Nibhay Kumar/mydigitalfc.com
