scorecardresearch
Wednesday, Dec 07, 2022
Premium

SpiceJet resumes operations after being grounded on fuel issue

The Bombay Stock Exchange sought clarification on Kapoor's assertion on resumption of flight operations.

Civil Aviation Ministry had yesterday said it will request the oil companies and airport operators to extend a 15-day credit facility to SpiceJet.  (Express photo by Kamaal Syeed) Civil Aviation Ministry had yesterday said it will request the oil companies and airport operators to extend a 15-day credit facility to SpiceJet. (Express photo by Kamaal Syeed)

After all its flights remained grounded for most part of the day today, cash-strapped SpiceJet resumed operations in the evening as oil companies, which had stopped fuel supplies to its aircraft, eased the restriction.

Hassled passengers vent their anger as over 75 flights were cancelled today. Around 75 flights are scheduled to operate after 1600 hours with the resumption of jet fuel supplies when the troubled carrier paid cash for the purchases.

While SpiceJet COO Sanjiv Kapoor tweeted an apology for the disruptions, an airline spokesperson said the flights “scheduled to depart at 1600 hours or for later are operating today.” He also said that the flights cancelled earlier would “remain cancelled.”

The Bombay Stock Exchange also sought a clarification from the airline on Kapoor’s assertion about resumption of flight operations.

Subscriber Only Stories
UPSC Key- December 7, 2022: Why you should read ‘Winter Session of Parlia...Premium
Over 50% landfill sites in 5 states, no remedial plansPremium
Cost & effect: Plastic surgery uptick in Mumbai govt hospitalsPremium
Oil price cap to preserve supply, enable countries like India to lower en...Premium

Not a single flight of the airline took off since morning after the oil companies refused fuel supplies to the carrier for non-payment of dues of the public sector oil marketing companies, which an airline spokesperson said totalled Rs 14 crore.

The Civil Aviation Ministry had yesterday requested the oil companies and airport operators to extend a 15-day credit facility to SpiceJet to save the airline from shutting down.

The Ministry had also asked Indian banks and financial institutions to extend loans of upto Rs 600 crore to the airline as part of measures to keep it functional.

Advertisement

Besides, it said it would request the Finance Ministry to permit external commercial borrowing (ECB) for working capital as special dispensation.

All these measures, however, came with a rider that the beleaguered airline will commit capital infusion at the earliest.

The airline has total liabilities of Rs 2,000 crore which include dues to the public sector oil firms and the Airports Authority of India (AAI).

First published on: 17-12-2014 at 07:23:21 pm
Next Story

Defence Acquisition Council approve proposals worth Rs 4,444 cr

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement
close