SpiceJet submits revival plan to the government

SpiceJet submits revival plan to the government

Troubled budget carrier SpiceJet today submitted a revival plan to the government on the basis of a proposed investment of USD 200 million from founding promoter Ajay Singh and a unit of US-based JP Morgan Chase.

However, the Kalanithi Maran's carrier is expected to come up with a comprehensive plan, which may include more details on the proposed investments by next week, sources said.

"SpiceJet executives will meet aviation ministry officials again early next week and submit a comprehensive plan with details of proposed investments and operations," they said.

Earlier, the SpiceJet Chief Operating Officer (COO) Sanjiv Kapoor along with acting Chief Financial Officer (CFO) Kiran Koteshwar and founding promoter Ajay Singh met Civil Aviation Secretary V Somasundaran and submitted the revival plan.

"It was a constructive meeting," Kapoor told reporters after submitting the revival plan to Civil Aviation Secretary at the Ministry headquarters here.

At the meeting, which lasted for one-and-a-half hours, Kapoor was accompanied by airline acting CFO Kiran Koteshwar and Singh, the original promoter who is reinvesting in the carrier.

Maintaining that there was "no outstanding" as of now with any oil marketing company and the November salaries of the employees have been paid, he said, with 18 operational Boeing aircraft, SpiceJet was currently flying 230 flights a day.
"SpiceJet has many well wishers including Ajay Singh," the COO said adding that participation of Singh was "always welcome."

Besides Singh, a unit of JP Morgan Chase would also be one of the investors. The potential investors are likely to buy stake from current promoter Kalanithi Maran by infusing USD 200 million within a month to help the airline to stay afloat.

The airline has already received Rs 17 crore from the investors and wiped off all its dues to the oil companies, official sources said.

The dues of no-frill carrier's to foreign and Indian vendors, airport operators and oil companies had grown from Rs 990 crore to Rs 1,230 crore between November 24 and December 10, according to data provided by the airline to the Civil Aviation Ministry.

The airline's dues to foreign vendors, including lessors of aircraft and maintenance, repairs and overhaul (MRO) facilities, had risen from Rs 624 crore on November 24 to Rs 742 crore on December 10, according to the data. SpiceJet owes banks Rs 300 crore against collateral.

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