Spicejet fails to submit revival plan, dues mount to Rs 240 cr

By: | Published: January 7, 2015 9:27 PM

Beleaguered SpiceJet has failed to submit a comprehensive revival plan...

SpiceJet, SpiceJet plan, SpiceJet revival, SpiceJet revival planThe SpiceJet airline has already received Rs 17 crore from the investors, which it has used to clear all its dues to the oil companies. (PTI)

Beleaguered SpiceJet has failed to submit a comprehensive revival plan, that will determine its fate, to the government so far, even as its dues towards the Airports Authority of India (AAI) mounted to Rs 240 crore, official sources said today.

“SpiceJet has yet to submit a comprehensive revival plan to the Government,” the sources said.

The cash-strapped budget carrier had presented a revival plan to the Civil Aviation Ministry late last month, but it was told to submit a revised comprehensive plan with more details.

The airline was expected to come up with such a plan, including more details on the proposed investments last week, but that has not presented so far, they said.

SpiceJet’s founding promoter Ajay Singh has also come to the rescue of the crisis-ridden airline, with Singh and a unit of US-based banking and financial services holding company, JP Morgan Chase, planning to invest in the carrier.

The potential investors are likely to buy stake from current promoter Kalanithi Maran by infusing USD 200 million to help the airline to stay afloat.

Meanwhile, the airline’s cumulative dues towards the AAI have swelled to Rs 240 crore till December 31 last year as a result of the government granting it an extended credit payment facility, the sources said.

In addition, the airline was adding Rs one crore each day in the dues since January 1, on account of landing, parking and route navigation charges, they said.

With the airline grounded for almost one full-day last December due to the oil companies’ refusal to supply it jet fuel without cash, Civil Aviation Ministry had come to its rescue with requests to oil marketing firms and the AAI to extend the credit line to the airline for two weeks till December 31, 2014.

The credit facility by the AAI was later further extended by two weeks on January 1.

The airline has already received Rs 17 crore from the investors, which it has used to clear all its dues to the oil companies.

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