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SpiceJet airline seeks government bailout, says won't be able to run operations on its own

The no-frill airline wants govt bailout; prepares employees for different eventualities

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Tottering budget airline SpiceJet Ltd admitted to the government on Monday that it would not be able to run its operations on its own and has sought to be bailed out of the crisis.

The senior officials, who met the Minister of State for Civil Aviation Mahesh Sharma, have reportedly asked for "urgent relief".

The airline has been scouting for investors for over a year without much success and has cancelled over 1,800 flights till the end of this month with several of its aircraft grounded.

Earlier in the day, just before Sanjiv Kapoor, SpiceJet COO, met the minister and government officials, Capt Sandeep Verma, senior VP & head of flight operations of the airline, wrote to his staff that if for any reason all did not go well, then they should expect a phone call from a senior management pilot from head office from roster cell phone or landline.

"He will brief you in detail as to the situation and the necessary further action. Please do exactly as briefed," says the message, a copy of which is with dna.

"Depending on the nature of the future action, we will stay in constant communication with you and support you. All SpiceJet staff will also be in communication and support of you at that time," wrote the Capt Verma in his message.

He said that if all went well then they could expect to run operations smoothly and "as planned".

Meanwhile, Capt G R Gopinath, pioneer of the low-fare aviation in the country, said the recurring crisis in the aviation sector was a "wake-up" call for the government to address the sector's demands for creating a more conducive environment for the survival airlines.

"SpiceJet crisis is a wake-up call to the government. Successive governments have neglected aviation which is integral to economic growth. If it is the vision of Narendra Modi that India must become an economic power house and compete in the global economy then aviation has to be integral to that vision," he told dna when asked for his reaction on the outcome of meeting between the airline executives and the government.

"Aviation is in a nascent stage in India and compares to Sub Saharan Africa in penetration of air service across social strata and across regions where ordinary people can fly. India needs a vibrant aviation sector not only in passenger travel but in manufacture, MRO (maintenance repair and overhaul), air cargo etc. The government is still stuck in the past and treats it like the preserve of the rich. It's key to equitable growth and as important as the automobile, railways, television, mobile telephony and the internet that provide connectivity," said Gopinath.

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