SpiceJet promoters committed to the airline, says Sanjiv Kapoor

Comments come at a time when the airline is scheduled to submit a 'concrete plan' for clearing outstanding payments to DGCA by Dec 1

Amid concerns over its deteriorating financial condition, SpiceJet today said that its promoters are committed to the airline. SpiceJet Chief Operating Officer Sanjiv Kapoor said, “The promoters are committed to the airline. They are very much interested in it.”

He declined to specify details whether the promoters have committed or are considering any amount for investment in the airline.

Kapoor said that the airline’s dues are significantly lower than outstanding payments of Rs 1,600 crore that has been confirmed by official sources. “Our dues are a fraction of that”, he said.

Kapoor’s comments came at a time when the airline is scheduled to submit a “concrete plan” for clearing outstanding payments to India’s aviation regulator the Directorate General of Civil Aviation (DGCA) by December 15.

DGCA has also asked the cash-strapped carrier, which has truncated its fleet to 37 aircraft over the last few months, to submit a “realistic schedule” by Monday. The airline is now operating 232 flights as compared to 345 flights operated in July 2014.

The extension to the moratorium of payments granted to SpiceJet by Airports Authority of India (AAI) is also set to expire on Monday. The airline is learnt to have dues of about Rs 200 crore pending with AAI.

The DGCA withdrew 186 flight slots of SpiceJet and barred the airline from booking flights beyond a month on last Friday.

The aviation regulator also asked the airline to refund passengers whose flights have been cancelled by December 15. The airline has already refunded 55,000 passengers according to figures with the regulator.

SpiceJet has also for the first time delayed salaries to employees in December. The DGCA has instructed it to pay salaries by the 7th of every month.