SpiceJet looks for concessions
Spicejet operates a fleet of 21 B737-800s, two B737MAX8s (with 42 on order), and 15 Bombardier Dash 8 Q400s.
February 1, 2015
New Delhi-based Spicejet has appealed to the Indian government to grant the struggling carrier various concessions aimed at allowing it to continue operating. The call comes against the backdrop of a fast deteriorating financial situation which, in mid- December saw the low cost carrier cancelling over 100 flights after it struggled to secure fuel at Hyderabad Int’l, Delhi Int’l, and Mumbai Int’l airports.
“They (SpiceJet) have given their problem to us and they have said that in case they have to shut down their operation then the sufferer will be the passenger,” Indian Minister of State for Civil Aviation, Mahesh Sharma, told local television channel ET Now. “They have requested certain relaxations and we will discuss it with our officers, we will discuss it with the senior minister and of course the government also about what best can be done.”
Although New Delhi has ruled out any direct financial assistance, Indian authorities have granted the carrier some leeway lifting a moratorium on the sale of tickets more than 30 days in advance. In addition, the state-run Airports Authority of India (AAI) has also agreed to defer the due-date for outstanding payments amounting to INR2 billion (US$31.2 million). Local petroleum firms have also been asked to extend Spicejet a credit line valid until the end of the month despite owing them INR140 million (US$2.2 million).