SpiceJet denies receiving credit from OMCs

Budget passenger carrier SpiceJet has denied receiving any credit from oil marketing companies (OMCs) and said it is working on a funding plan.

SpiceJet's Chief Operating Officer Sanjiv Kapoor said late Wednesday night that the company had not received any credit from OMCs.

"No credit was received from oil cos (OMCs). All funding is from own sources," Kapoor said.

"We certainly have a revival plan. We have been executing on it. The funding plan is what is being worked on."

On Dec 26, the airline had submitted a revival plan to the civil aviation ministry.

Meanwhile, the airline is hopeful of infusion of funds from the prospective new investors led by Ajay Singh and a private investment bank.

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 down operations.

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

In December 2014, the cash-strapped budget carrier was given an interim relief by the civil aviation ministry, as its promoters were told to infuse fresh equity.

Under the interim relief, the airline was provided more time to pay its dues to oil companies and the national airport operator.