Mumbai: The ministry of civil aviation has stepped in with a six-point formula to bail out cash-strapped low cost carrier SpiceJet. The airline was on Tuesday denied fuel by oil companies across India after 16 flights from Mumbai alone were cancelled.
Among other measures, the government has requested banks and financial institutions to lend Rs 600 crore to SpiceJet, backed by a personal guarantee from airline chairman Kalanithi Maran.
"This should be paid immediately after securing the long-term investment, which will take around eight weeks to consummate," a senior ministry official said.
The airline would also be allowed to accept bookings up to March 31, 2015. Public sector oil companies would be requested to give credit for upto 15 days. On Tuesday, Hindustan Petroleum Corporation Ltd (HPCL) did not allow uplift of aviation turbine fuel (ATF) to SpiceJet aircraft across airports, including Mumbai.
"Just as we do with other airlines, SpiceJet too makes payments once in three days," HPCL's general manager (Aviation) Rajneesh Mehta told Mirror. Mehta said he was unaware of the actual position of the airline as of Tuesday.
According to ministry officials, the daily off-take of the airline is about Rs 5 crore. This would amount to about Rs 75 crores for the 15-day period. As of Monday, the dues pending is only Rs 14 crore.
16/12/14 Mumabi Mirror
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Among other measures, the government has requested banks and financial institutions to lend Rs 600 crore to SpiceJet, backed by a personal guarantee from airline chairman Kalanithi Maran.
"This should be paid immediately after securing the long-term investment, which will take around eight weeks to consummate," a senior ministry official said.
The airline would also be allowed to accept bookings up to March 31, 2015. Public sector oil companies would be requested to give credit for upto 15 days. On Tuesday, Hindustan Petroleum Corporation Ltd (HPCL) did not allow uplift of aviation turbine fuel (ATF) to SpiceJet aircraft across airports, including Mumbai.
"Just as we do with other airlines, SpiceJet too makes payments once in three days," HPCL's general manager (Aviation) Rajneesh Mehta told Mirror. Mehta said he was unaware of the actual position of the airline as of Tuesday.
According to ministry officials, the daily off-take of the airline is about Rs 5 crore. This would amount to about Rs 75 crores for the 15-day period. As of Monday, the dues pending is only Rs 14 crore.
16/12/14 Mumabi Mirror
