Troubled low-cost airline SpiceJet on Friday said it has got the civil aviation ministry’s approval for its reconstruction and revival plan.
Following a board meeting, SpiceJet had on January 15 submitted a revival plan proposing transfer of Kalanithi Maran’s promoter stake as well as management control to airline’s co-founder Ajay Singh.
In a regulatory filing to the stock exchanges, SpiceJet said: “In furtherance of the earlier intimation dated January 15, the company has on January 22 received the approval of the competent authority, the ministry of civil aviation for the scheme of reconstruction and revival for the takeover of ownership, management and control of SpiceJet Limited by Ajay Singh in accordance with the application made by the company.”
Putting an end to speculation around the fate of the airline, media baron Kalanithi Maran had decided to exit the cash-starved airline, allowing Ajay Singh to bail out the carrier. Singh will have to infuse the much-needed capital, around Rs 1,200 crore, with help from some US-based PE funds, including JP Morgan.
Giving further impetus to the revival plan, the Directorate General of Civil Aviation (DGCA) had lifted a ban on advance bookings by SpiceJet.
The airline had on Thursday opened bookings for flights during its summer schedule, which commences from 29 March.
“SpiceJet thanks its customers, employees, partners, and suppliers for their support as it continues on its restructuring and turnaround plan,” the airline had said. It hopes to run 280 daily flights.
DGCA’s restrictions on advance bookings had choked the airline’s revenue stream. The regulator had earlier restricted SpiceJet to accept advance bookings only up to March 31.