SpiceJet submits plan for revival

Sanjiv Kapoor, together with Ajay Singh, submitted the plan to civil aviation secy calling it a “constructive meeting”.

By: Express News Service | New Delhi | Published: December 27, 2014 1:45 am

SpiceJet on Friday submitted a revival plan to the government on the basis of a proposed investment of $200 million from founding promoter Ajay Singh and US-based JPMorgan Chase.

The airline’s chief operating officer Sanjiv Kapoor, together with Ajay Singh, submitted the plan to civil aviation secretary V Somasundaran, later calling it a “constructive meeting”. Maintaining that there was “no outstanding” as of now with any oil marketing company, Kapoor said SpiceJet was currently flying 230 flights a day with 18 operational Boeing aircraft.

Besides Singh, a fund managed by JPMorgan 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. SpiceJet has already received Rs 17 crore from the investors, official sources said.

The budget carrier’s dues to foreign and Indian vendors, airport operators and oil companies had grown from Rs 990 crore to Rs 1,230 crore between November 24 and December 10, according to data provided by the airline to the civil aviation ministry.

The airline’s dues to foreign vendors, including lessors of aircraft and maintenance, repairs and overhaul facilities, had risen from Rs 624 crore on November 24 to Rs 742 crore on December 10, according to the data. Spicejet owes banks Rs 300 crore against collateral.

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