Spice Jet needs to sort out its financial problems: Civil Aviation Minister

Union Civil Aviation Minister Ashok Gajapathi Raju Pasupati has said troubled airliner Spice Jet would have to sort out its financial problems, and added that the government could only help in the process.

"Their problem is financial. They have to get their books right. We will do up to only light hand holding. We are not going to take burden of it but we want to see airline survive and serve the Indian people," said Raju.

Earlier, an official release from Spice Jet stated that Ajay Singh, who helped found the airline in 2005, had agreed to buy a controlling stake from billionaire majority owner Kalanithi Maran's Sun Group.

He was expected to submit his plan, which could involve an investment of USD 240 million, by the end of January. The plan would need regulatory approval.

Also read: SpiceJet joins low fare race, puts up 5 lakh tickets for sale, starting at 1,499

"SpiceJet has been in regular touch with aviation. They want to change the ownership pattern and share holding. That is an internal thing of SpiceJet so that they gain confidences among finances and they are going ahead," added Raju.

Majority owner Kalanithi Maran's Sun Group has reportedly been actively looking for an investor, with the airline losing money for the last five quarters.

SpiceJet has reduced its daily flights by a third since September to 230 a day, and could also cull its workforce of 5,000.