New SpiceJet investors may bring in ₹1,500 cr; want ECB route opened

The new investors in SpiceJet are looking to bring in ₹1,500-1,600 crore, including ₹500-600 crore through External Commercial Borrowing (ECB).
This was one of the proposals made to the Civil Aviation Ministry today, though neither Ajay Singh, one of the possible investors in SpiceJet, nor the airline’s Chief Operating Officer Sanjiv Kapoor gave specifics of what transpired at the 90-minute meeting with the Ministry officials. While SMS messages to Ajay Singh and Kapoor seeking details of the meeting and the proposal remained unanswered, sources close to the development told newspersons that SpiceJet is on track to finding an investor in the next four-six weeks. The airline had debt of ₹1,600 crore as on December 5, official sources had told newspersons earlier this month.
Opening up the ECB route is one of the suggestions the Ministry of Civil Aviation has made to the Finance Ministry to help the airline sector. Earlier this week, a senior Civil Aviation Ministry official told newspersons that if the Finance Ministry accepts this request, domestic airlines will be able raise funds abroad, at a lower rate of interest. In 2012, the Finance Ministry had allowed financially strapped airlines to take the ECB route.
http://www.thehindubusinessline.com/industry-and-economy/logistics/new-spicejet-investors-may-bring-in-1500-cr-want-ecb-route-opened/article6728629.ece?homepage=true

Comments

Post a Comment

Popular posts from this blog

Vistara Domestic Premium Economy vs. Economy – Is The Upgrade Worth It?

Economy on Vistara As one of only two  full-service carriers  in India, Vistara offers a high-quality economy product. On its A320, which used on most domestic routes, it offers 18-inch wide seats with a pitch of 29-30 inches. While this does sound standard, the well-padded seats and adjustable headrest make for a much more comfortable offering than its low-cost competitors. The seats also offer an acceptable 3″ recline. In terms of service, Vistara is one of the few airlines offering hot meals on domestic routes (minus short routes under an hour). All economy passengers, except those booked on Economy Lite fares, receive a meal along with hot or cold beverages. From personal experience, the meals are good and enough for domestic hops. For those traveling on Lite fares, only complimentary hot beverages are available. Vistara also has a small buy-on-board menu, which features packaged snacks and drinks, along with some hot instant meals. Originally, the airline served all passenger’s me
Read more

Why the Airbus A340 Has A Middle Landing Gear

Image
The  Airbus A340  was specially designed for long haul flying and had something not seen with other widebody aircraft flying today. It was a unique middle landing gear that allowed the plane to take off with heavier loads and carry more fuel for its four hungry engines. What is the middle landing gear? If you have ever looked carefully at a picture of an A340 (or if you are lucky, in real life), you might have noticed an extra landing gear on the belly in the middle of the plane. Here it is on a Virgin Atlantic  Airbus A340-600  to the rear of the aircraft. Looking at the bottom of an A340 you’ll see that there are already two other sets of landing gears under the wings, why would an aircraft need a third in the middle? Why some A340s have the middle landing gear Plain and simple, the extra landing gear allows the A340 aircraft to have a higher MTOW (maximum take-off weight). This means more passengers and cargo, plus more fuel to go a longer distance. Perfect for t
Read more

Preparing To Start Domestic Flight Operations Within A Week: Civil Aviation Minister Hardeep Puri

The domestic flight operations are likely to resume within a week, says Union Civil Aviation Minister  Hardeep Singh Puri . The commercial flight operations remain suspended since March 24 after the announcement of nationwide lockdown to contain the spread of coronavirus. In an interview with  Outlook ’s  Preetha Nair , the Union Minister also talks about the government’s massive plan to evacuate stranded Indians and the logistical challenges involved. He also says a decision on operating flights between green zones of the country will soon be taken. You have hinted that the commercial flight operations are set to begin after May 15 in a calibrated way. Can you elaborate? We are preparing to start domestic flight operations even before May 15. My effort will be to try and move in the direction of starting it very soon. I can’t put a date on it because when you are planning evacuation operations, you need the co-operation of the state governments. In order to open up domestic civil avia
Read more