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SpiceJet submits revival plan to aviation ministry

26 December 2014

SpiceJet today submitted a revival plan to the civil aviation ministry citing promised $200 million in funding from its original promoter Ajay Singh and US-based JP Morgan Chase even as the carrier maintained that there was "no outstanding" with any oil marketing company and that it was operating 230 flights daily with 18 operational Boeing aircraft.

The airline's chief operating officer Sanjiv Kapoor along with Ajay Singh today met civil aviation secretary V Somasundaran to submit the revival plan.

"It was a constructive meeting," Kapoor said.

Besides Singh, a fund managed by JP Morgan Chase would also be one of the investors. The potential investors are likely to buy stake from current promoter Kalanithi Maran by infusing $200 million within a month to help the airline stay afloat.

Kapoor said that employees have been paid salaries for November and the airline also paid its dues to oil companies.

"SpiceJet has many well wishers including Ajay Singh," the COO said.

The airline has already received Rs17 crore from the investors, official sources said, adding, "it has wiped off all its dues to the oil companies".

Meanwhile, SpiceJet's dues to foreign vendors, including lessors of aircraft and maintenance, repairs and overhaul (MRO) facilities, had risen from Rs624 crore as of 24 November to Rs742 crore by 10 December, according to the data.

SpiceJet owes banks Rs300 crore against collateral.

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