NEW DELHI (TIP): The government has asked cash-strapped SpiceJet to submit its proposed cash flow plan in writing by next Monday. The low cost carrier’s (LCC) former promoter Ajay Singh, who is leading the revival attempt by arranging funds from a unit of US-based J P Morgan Chase and other investors, met the entire aviation ministry brass on December 26 along with airline COO Sanjiv Kapoor. Singh is in talks with investors to pump in $200 million into the airline. They may buy out current promoter Sun Group chief Kalanithi Maran’s entire 58% stake in the LCC, as Maran has refused to bail out SpiceJet from its crisis. “We have been told that SpiceJet will get funding. So far, we have been supportive of the airline as we do not want any carrier to shut down. But, they have to give in writing their concrete fund flow plan as we will be able to take further decisions based on that only,” said a source. While oil companies are supplying to SpiceJet only on cash payment, banks have refused to give more loans unless the promoters put in some money. The aviation ministry has asked Airports Authority of India (AAI) not to put the LCC on cash-andcarry till the year-end despite having dues of almost Rs 200 crore. “We were told the Ajay Singh-led funding plan will take four to six weeks to fructify as the likely investors are doing due diligence. But, we need something in writing from the airline in order to AAI to decide what it does from January 1 — in terms of continuing giving credit or insisting on cash payment,” said another source. The AAI has warned the ministry that it does not want to end up with another Kingfisher like situation where it ends up with dues of hundreds of crores. Meanwhile, SpiceJet has cleared November salary dues to employees and paid off oil companies with advance funding of about Rs 17 crore arranged by Ajay Singh. “It was a very constructive meeting. Our airline was doing well commercially but there were some legacy issues,” Kapoor said after Friday’s meeting, adding that the LCC currently operates 18 Boeing 737s and operated 230 flights a day along with the Bombardier Q400 fleet. “We have no outstanding with any oil marketing company… SpiceJet has many well wishers including Ajay Singh,” the COO said. The LCC’s dues to foreign and Indian vendors, airport operators and oil companies are learnt to have grown from Rs 990 crore to Rs 1,230 crore between November 24 and December 10. 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. Spicejet owes banks Rs 300 crore against collateral.
SPICEJET TOLD TO GIVE CASH FLOW PLAN IN WRITING
