SpiceJet seeks govt help; Request to be put up before PMO: MoS

Image
Press Trust of India New Delhi
Last Updated : Dec 15 2014 | 6:15 PM IST
Suffering a total liability of about Rs 2,000 crore, beleaguered no-frill carrier SpiceJet today approached the government and sought urgent financial help to run its daily operations.
Top officials of the airline met Minister of State for Civil Aviation Mahesh Sharma and made the plea for "urgent relief".
The minister said any such decision could be taken by the "highest level" in the government and said the request of SpiceJet would be put up before the Prime Minister's Office and the ministries of Finance and Petroleum.
"No assurance has been given to them," Sharma told reporters after the meeting.
The meeting came hours after the airline officials met DGCA chief Prabhat Kumar and shared an operational plan, but sources in the aviation regulator said there was "nothing new" in it.
DGCA had given the airline time till today to release pending salaries of employees and submit a schedule on how it plans to pay vendor dues of about Rs 1,600 crore.
Till date, SpiceJet has gradually reduced flights across its network from 332 daily to 239 from September 1 till date, according to latest official figures. It has cancelled over 1,800 flights a month.
The airline, which had 48 aircraft -- 33 Boeing 737s and 15 Q-400 regional jets, was operating only 35 of them -- 22 B -737s and 13 Q-400s, considerably shrinking its fleet as it lost considerable amounts on a regular basis. It has a 17 per cent domestic market share.
The airline has been losing money and has cancelled over 1,800 flights in a month. It has shrunk its fleet from 58 aircraft to nearly 37.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Dec 15 2014 | 6:15 PM IST

Next Story