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. 


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