New Delhi: Troubled low-cost carrier SpiceJet has since Tuesday started clearing part of its operational costs to state-run Airports Authority of India (AAI), on a daily basis. The move follows a warning that AAI might stop the credit facility extended to the airline, if its liabilities rose further.
AAI had said the airline, awaiting Rs 1,500 crore of funds from new investors led by founder-promoter Ajay Singh by March, would be put on cash-and-carry if regular payments were not made. The warning had come after SpiceJet’s dues to AAI (including interest at 12 per cent) exceeded Rs 300 crore this month — from Rs 230 crore in early December last year. The total amount was much higher than the airline’s bank guarantees of Rs 82 crore (Rs 30 crore of which was recently renewed), civil aviation ministry sources told Business Standard.
“SpiceJet’s credit facility with AAI has been extended to January 27, on the assurance that the part payments will continue. If that stops, we will put it on cash-and-carry. Its previous payment was of Rs 5 crore in December. It has now assured us that it is getting new investments, so we are giving it time to clear its dues,” an official said.
After a few days of gains, the SpiceJet shares on Wednesday declined 8.3 per cent from their provious close on BSE to end at Rs 21.10 apiece.
22/01/15 Roudra Bhattacharya/Business Standard
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AAI had said the airline, awaiting Rs 1,500 crore of funds from new investors led by founder-promoter Ajay Singh by March, would be put on cash-and-carry if regular payments were not made. The warning had come after SpiceJet’s dues to AAI (including interest at 12 per cent) exceeded Rs 300 crore this month — from Rs 230 crore in early December last year. The total amount was much higher than the airline’s bank guarantees of Rs 82 crore (Rs 30 crore of which was recently renewed), civil aviation ministry sources told Business Standard.
“SpiceJet’s credit facility with AAI has been extended to January 27, on the assurance that the part payments will continue. If that stops, we will put it on cash-and-carry. Its previous payment was of Rs 5 crore in December. It has now assured us that it is getting new investments, so we are giving it time to clear its dues,” an official said.
After a few days of gains, the SpiceJet shares on Wednesday declined 8.3 per cent from their provious close on BSE to end at Rs 21.10 apiece.
22/01/15 Roudra Bhattacharya/Business Standard
