1. SpiceJet resumes operations after being grounded on fuel issue

SpiceJet resumes operations after being grounded on fuel issue

With the question of its survival hanging in the balance, embattled low-cost carrier SpiceJet on...

By: | New Delhi | Updated: December 17, 2014 8:04 PM
Civil Aviation Ministry had yesterday said it will request the oil companies and  airport operators to extend a 15-day credit facility to SpiceJet. (Reuters)

Civil Aviation Ministry had on Tuesday said it will request the oil companies and airport operators to extend a 15-day credit facility to SpiceJet. (Reuters)

After all its flights remained grounded for most part of the day today, cash-strapped SpiceJet resumed operations in the evening as oil companies, which had stopped fuel supplies to its aircraft, eased the restriction.

Hassled passengers vent their anger as over 75 flights were cancelled today. Around 75 flights are scheduled to operate after 1600 hours with the resumption of jet fuel supplies when the troubled carrier paid cash for the purchases.

While SpiceJet COO Sanjiv Kapoor tweeted an apology for the disruptions, an airline spokesperson said the flights “scheduled to depart at 1600 hours or for later are operating today.” He also said that the flights cancelled earlier would “remain cancelled.”

The Bombay Stock Exchange also sought a clarification from the airline on Kapoor’s assertion about resumption of flight operations.

Not a single flight of the airline took off since morning after the oil companies refused fuel supplies to the carrier for non-payment of dues of the public sector oil marketing companies, which an airline spokesperson said totalled Rs 14 crore.

The Civil Aviation Ministry had yesterday requested the oil companies and airport operators to extend a 15-day credit facility to SpiceJet to save the airline from shutting down.

The Ministry had also asked Indian banks and financial institutions to extend loans of upto Rs 600 crore to the airline as part of measures to keep it functional.

Besides, it said it would request the Finance Ministry to permit external commercial borrowing (ECB) for working capital as special dispensation.
All these measures, however, came with a rider that the beleaguered airline will commit capital infusion at the earliest.

The airline has total liabilities of Rs 2,000 crore which include dues to the public sector oil firms and the Airports Authority of India (AAI).

 

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Tags: SpiceJet
  1. H
    H.S. KRISHNA
    Dec 17, 2014 at 8:06 pm
    The Government has asked the Banks to give additional loan to EJET when they already have big outstandings with various parties. Getting the Chairman's guarentee has no meaning. What should be done to help EJET to keep it running, is to grant any additional loans only against ets owned by the Chairman if they have already not been pledged. Banks lend Public money and it is expected the Government will ensure public money is not given to parties who already have big outstandingas which they are unable to pay. The Supreme Court asked Subrato Roy to sell his ets to clear loans. CFhairman of EJET, surely must be having lot of ets in his personal name. Just as the Supreme Court did to Roy, Government should do same thing to Maran asking him to sell part of his ets, to clear his outstandings !!!
    Reply
    1. Soniya Ray
      Dec 17, 2014 at 4:43 pm
      Get Latest news from around the world :vishwagujarat/en/
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