SpiceJet fails to submit revival plan

The airline was grounded for almost a day in December due to oil companies' refusal to supply fuel

SpiceJet has failed to give a comprehensive revival plan to the government so far, even as its dues towards the Airports Authority of India (AAI) mounted to Rs 240 crore, official sources said on Wednesday.

The budgetcarrier had presented a plan to the civil aviation ministry late last month, but was told to give a revised comprehensive plan with more detail.

The airline was expected to include detail on the proposed investments last week, but that has not been presented, they said.

SpiceJet's founding promoter, Ajay Singh is reported to be in talks with a unit of US-based banking and financial services holding company JPMorgan Chase. The potential investors are likely to buy stake from current promoter Kalanithi Maran by infusing $200 million and help the airline stay afloat.

The airline's cumulative dues towards AAI have swelled to Rs 240 crore till December 31 last year as a result of the government granting it an extended credit payment facility, the sources said.

In addition, the airline was adding Rs 1 crore each day in the dues since January 1, on account of landing, parking and route navigation charges, they said. Later the credit facility by the AAI was further extended by two weeks on January 1. The airline has already received Rs 17 crore from the investors, which it has used to clear all its dues to the oil companies.