Ailing budget carrier SpiceJet has told aviation ministry officials that it is hopeful of receiving an equity infusion of Rs 1,200 crore and arranging another Rs 600 crore through external commercial borrowings by March next year.
Ministry officials were left unimpressed by the presentation made by SpiceJet’s top management, which contained no specific details about the airline’s funding plans. SpiceJet have been asked to submit a clear cut plan by next week, giving concrete details of how and when it planned to raise capital, how it planned to sustain operations and pay various vendors.
The 15-day time given to SpiceJet to make payments to the Airports Authority of India ends on December 31.
The airline on Friday requested aviation authorities to lift the embargo imposed on bookings that the airline can make beyond March 2015 but no dispensation was provided.
Those present at the meeting included SpiceJet’s co-founder Ajay Singh who is leading a consortium that is likely to invest $217 million in the embattled airline. SpiceJet’s fleet of Boeing 737s has come down to 18 from 22 it was operating around two weeks back.
“We are working on it,” said SpiceJet chief operating officer Sanjiv Kapoor, after the meeting, when asked about the revival plan. “We expect it to come in due course of time,” said an evasive Kapoor on when the airline would receive fresh funding.
“What has led to the current crisis is that we have some legacy liabilities. Once funding is in place all that would be taken care of,” he added.
Kapoor said Singh was a “founder, former promoter and well wisher of SpiceJet and any involvement he has, whether it has been in the past, current or future will always be welcome.”
Dues to oil companies, he said, had been cleared and the airline’s dues to banks currently stood at Rs 300 crore.