SpiceJet fails to submit cash flow plan


By TNN | 30 Dec, 2014 


Troubled low cost carrier (LCC) SpiceJetBSE -4.81 % reportedly failed to submit a cash flow plan to the aviation ministry to show that its prospective investors mean business. An unimpressed ministry had last Friday asked the LCC management and SpiceJet's former promoter Ajay Singh to submit the plan by Monday. 

The government wanted to make it sure that SpiceJet's plan to get some funds has some concrete basis so that it can meet its financial requirements - pay salaries of December to employees and dues to airports and others. 

The LCC has dues of almost Rs 200 crore to the state-run Airports Authority of India (AAI). While AAI wanted to put the LCC on cash-and-carry, it was asked by the aviation ministry not to revoke SpiceJet's credit facility till the year-end. 

The ministry made similar requests to oil companies regarding jet fuel supply to SpiceJet, apart from asking banks to give loans to it. But apart from AAI, no one listened to the aviation ministry. 


Comments

Post a Comment

Popular posts from this blog

For aviation, Covid could be the next 9/11

Image
Once the lockdown is lifted, your flying experience will take on a new avatar. It’s as yet unclear when flights will resume and what the new social distancing norms will be, but the pandemic will radically shake up aviation, just like 9/11 and the security challenges it ushered in did nearly two decades ago. The check-in changes You will notice the changes the moment you reach the airport. In fact, it could set in even earlier. While booking tickets, the airline may ask you to furnish a medical certificate to establish you are not displaying corona symptoms. Some international airlines were insisting on a medical certificate at the time of check-in even before the lockdown. There is every likelihood that more flyers will opt for web check-ins. However, you may still need to approach the counter if you have check-in baggage, unless a newly evolved technology takes care of that, too. At the airport, not only will the social distancing norms be more stringent, but the...
Read more

Aviation sector’s expectation of govt bailout unrealistic

The aviation industry’s high expectations that the government will bail out the sector may be “unrealistic,” CAPA said on Monday. The aviation advisory, however, does put up some scenarios wherein the government can help industry, like by providing a moratorium on airport and en route charges, on interest and principal payments, and on tax obligations. In its third update on COVID-19 & the State of the Indian Aviation Industry, CAPA says it is likely to take up to 12 months from the time that the restrictions put in place as a result of coronavirus are lifted for Indian airlines to return to a pre-Covid operational fleet of 650 aircraft. Its estimates show that the airlines could have an estimated 200-250 surplus aircraft in their fleets for the next six-to-12 months. Starting April-end this year, Indian carriers are initially expected to seek to return up to 100 aircraft to lessors, especially older equipment and those that may be closer to the expiry of their terms. It sa...
Read more

GoAir asks most staff to go on leave without pay

Low-fare carrier GoAir has put most of its employees on leave without pay to cut costs as the all airline operations in India remain suspended until May 4. India, which declared a lockdown from March 25 has extended it to May 3 from the earlier date of April 14. The move to implement leave without pay was communicated by the GoAir’s HR head Nakul Tuteja on Saturday in an email. On April 1, GoAir deferred paying a part of the March salaries of many of its employees to April in addition to pay cuts implemented earlier. He said it is till May 3 but may be extended. The airline had cut salaries by 50% by for its top leadership last month and then extended pay cuts to other employees barring those in the junior level of D grade. India’s aviation industry, like its global peers, has been the worst hit by the novel coronavirus crisis, which led the government to close the country’s borders and then implement a 21-day nationwide lockdown, prohibiting all travel. It...
Read more