Troubled airline SpiceJet Ltd got another breather on Monday when the state-owned Airports Authority of India (AAI), which had extended the credit facility to the budget airline till January 10, decided to continue it.
Troubled airline SpiceJet Ltd got another breather on Monday when the state-owned Airports Authority of India (AAI), which had extended the credit facility to the budget airline till January 10, decided to continue it.
A senior executive of the AAI, who did not want to be named, said SpiceJet had not been put on cash and carry mode. An airline is put on cash and carry mode when its dues exceed acceptable credit limit.
"It (SpiceJet) has not been put on cash and carry as it has given some undertaking. We have not given any deadline to it right now. This decision will be revisited after some period again," he said.
The Ministry of Civil Aviation, which is keen on keeping the beleaguered airline in air to send a positive message on investment environment in the country, has advised all its creditors to extend all possible assistance for its revival.
The no-frill airline owes a total of Rs 280 crore to the AAI. Its credit line had been withdrawn some time back due to mounting dues.
The credit line of Delhi International Airport Ltd (DIAL), a GMR-led consortium that operates the Indira Gandhi International Airport (IGIA), to SpiceJet expires on Wednesday (January 14) at 2 pm.
DIAL reportedly recently encashed the airline's bank guarantee of Rs 15 crore on non-payment of its dues.
The Kalanithi Maran-owned airline is looking for investors to resuscitate it operation, which has been curtailed due to shortage of funds to operate more than 230 flights a day against the 350 flights operated a few months back.
White knight investor Ajay Singh, who has jumped to bring capital, was supposed to submit a revival plan in the first week of January but has been unable to do so.
The Centre for Asia Pacific Aviation (CAPA) has estimated that airline needs approximately $250 million to turn around.
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