SpiceJet submits new revival plan

The airline is also hopeful of an infusion of an addition Rs1,200 crore ($200 million), from the new investors led by Ajay Singh and a private investment bank which will initially buyout a minority stake in the troubled airline.

A SpiceJet aircraft.- AP file photo

New Delhi: Even as passengers continued to suffer due to SpiceJet’s truncated operations, the airline’s management along with new investors submitted a revival plan to the civil aviation ministry, proposing a Rs300 crore infusion and a subsequent Rs1,200 crore buyout to keep the airline afloat.

According to ministry officials, the company’s chief operating officer Sanjeev Kapoor along with co-founder Ajay Singh submitted a revival plan which incorporated an equity infusion of Rs300 crore which has been backed by banks.

The airline is also hopeful of an infusion of an addition Rs1,200 crore ($200 million), from the new investors led by Ajay Singh and a private investment bank which will initially buyout a minority stake in the troubled airline. They will subsequently increase their holding and invest further into strengthening the budget carrier’s operations.

Singh, the co-founder of the airline, had earlier sold his stake in 2010 but is now interested in investing back in the budget carrier to save it from shutting operations. The company’s management informed the ministry through the revival plan that they have cleared all pending dues of the employees and the oil marketing companies.

After the meeting, Kapoor said that the airline has already received Rs17 crore from the new investors and that it has wiped off all its dues to employees and the oil companies.

However, the budget carrier’s dues to other vendors have increased to Rs1,230 crore from Rs990 crore during November 24 to December 10. The company has somehow managed to salvage some its operations with Rs300 crore loan against collateral from banks.

The airline is currently operating 230 flights per day with a fleet of 18 aircrafts.