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Speedwings, a division of British Airways that provides technical support to ModiLuft, has drawn up a revival plan for the S K Modi-promoted airline envisaging raising $37 million through debt and equity.

ModiLuft's licence for commercial operations is currently suspended. The airline plans to clear all debts by the end of the current year to meet the norms set by the Directorate General of Civil Aviation for revalidation of licence.

Asked to comment on the plan, a ModiLuft executive told Business Standard that, "Since Khandwala Finance are structuring the financing, it would be appropriate to talk to them."

According to Paresh Khandwala of Khandwala Securities, the airline has received a letter of intent from an European bank for $17 million debt component. A final letter is expected next week, he saidModiluft will be raising another $20 million through a private placement of equity, the roadshows for which have already begun. ``The roadshows have concluded in the middle east and we got good response there, now we will hold road shows in UK, Europe and US, and hope to tie up the equity component by December 6-7,'' Khandwala said.

As part of the plan, Royal Holdings Services Ltd an overseas corporate body based in the US has committed to infuse funds into ModiLuft.

The revival plan envisages the appointment of Rex Lezard as the chief executive officer, along with Robert Huges chief financial officer, John Roussel as marketing director and David Ely as the technical director. All the four are from Speedwings. The company will begin operations with an initial fleet of six aircraft, expanding to twelve over the next three years. name="description" content="Maruti Udyog yesterday announced the launch of its first new vehicle in the Indian market in six years, Baleno, carrying an aggressive price tag of Rs 6.74 lakh ex-showroom in Delhi.">